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Obama Won't Include Job Creation Tax Credit in Stimulus

 
FOXBusiness
     

    President-elect Barack Obama will not include a job-creation tax credit in his sweeping stimulus bill.

    FOX News, citing Democratic sources, said the job-creation tax credit, which was criticized by both Democrats and Republicans, has been removed from the plan. According to FOX News, Democrats also received promises that more energy tax breaks and tax cuts will be included in the plan. Obama is expected on Capitol Hill Tuesday to meet with Senate Democrats to get votes for the second half of TARP.

    The job-creation tax credit was designed to give businesses a tax credit for creating jobs but some say the idea isn’t workable. 

    In previous years, the Internal Revenue Service has told lawmakers that a job-creation tax credit couldn’t be drafted into law because it wouldn’t be able to tell which jobs were saved and which were created -- making it difficult to distribute the tax credits.

    The Wall Street Journal reported Monday that Democrats met with Obama’s team over the weekend and that Obama aides signaled a willingness to make changes to the stimulus package in order to get it passed. The Journal also reported the Obama team is mulling a $25 billion package of tax incentives for energy conservation and renewable energy and a spending package on energy initiatives.