Obama Wants $100B Business Tax Break

Hot on the heels of his $50 billion infrastructure proposal, Barack Obama will call for a $100 billion business tax credit on Wednesday, administration officials tell the Washington Post. The proposal would increase and make permanent a research and development tax credit, in an effort to reward firms that develop new technologies and create jobs in the US.

Obama’s hoping to both boost the economy, and undercut Republican accusations that he’s anti-business. To avoid deficit concerns, he’ll pay for the program by closing corporate tax loopholes. But the White House has ditched a more ambitious break on payroll taxes, deeming the idea too expensive. The R&D tax credit was created in 1981 as a temporary measure. Congress has repeatedly extended it since, before finally allowing it to expire in December.