Congressional candidate David Gill (IL-15) said he strongly supports a business tax credit proposed by Pres. Obama as a way to stimulate the economy and encourage businesses to expand and create jobs in east central Illinois.
The tax breaks would allow businesses to immediately write off 100 percent of expenditures on new plants and equipment, including farm machinery, having the net effect of cutting business taxes by nearly $200 billion over two years. They are similar to ones proposed by Republicans in the past to stimulate economic growth, and have been widely praised by economists. Current tax law allows deducting expenditures over a period of three to 20 years.
According to the Wall St. Journal, the proposal would give small businesses "an immediate cash infusion to offset the cost of investment." Pres Obama's plan also calls for more funds for road construction projects and would make permanent a federal tax credit for business research and development.
"I strongly support President Obama's proposals to let businesses quickly write off 100 percent of their spending on new plants and equipment through 2011, as well as a $50 billion program to rebuild roads, railways and airports," said Dr. Gill, who is running to unseat five-term Rep. Tim Johnson in the upcoming election on Nov. 2. "According to economists, these proposals will work well in stimulating job growth, something desperately needed here in Illinois-15."
Johnson has voted against the last economic stimulus bill that contained FutureGen funding and provided federal money for the construction and repair of roads and bridges in the district this summer.
"These are precisely the steps necessary to restore our economic vigor, where our manufacturing base has been decimated by the "free trade' enthusiasts like my career politician opponent," Dr. Gill added. "And these proposals will be deficit-neutral, provided that we offset them by closing various corporate loopholes and levying targeted tax hikes on big business, particularly on the oil and gas industry and on multinational corporations."
Congress is expected to take up the proposals this week.