The Meltdown

Obama's $300 Billion Tax Cut

Cheered by Republicans.

Looks like President-elect Obama's detractors may have to remove the first part of their "tax-and-spend liberal" smear. Obama is asking that tax cuts make up to 40 percent of his $775 billion stimulus. That means more than $300 billion in tax cuts, which are already winning Republican approval from the likes of Senate Minority Leader Mitch McConnell. Obama's tax-cut proposal, spread out over two years, would pack more punch than either of President Bush's tax cuts (his $1.35 trillion cut in 2001 was spread over 10 years). The plan would attempt to boost consumer demand by $140 billion by providing a $500 tax break for individuals and $1000 for couples.