Is it significant that much of the plan will be in the form of tax cuts? Yes it is. It means that basically, conservatives have won the argument and the Keynesians, while not out the door yet, have certainly been handed their hat. Politico: The two central measures to be taken in the package will be a one-year extension of a payroll tax cut, and an extension of expiring jobless benefits, according to the AP. These two measures alone would total around $170 billion. Obama will also consider a tax benefit to those businesses that hire the unemployed, with a price tag of around $30 billion. Public works projects will also be included, but the AP reports that this will be less than $50 billion of the package, the AP reported. The president will also continue, for one year, a tax break for business that allows them to deduct the full value of equipment. The New York Times said that the cost of the package would be "several hundred billion," while The Washington Post estimated the...(Read Full Post)