Obama's Stimulus Package Includes Refunds on Business Taxes

President-Elect Obama's stimulus plan, which could amount to almost one trillion in new spending, has left some fiscal conservatives weary.

In an appeal to business groups and Republican leaders, yesterday, the AP reported that Obama's plan now includes up to $100 billion in tax cuts to businesses in tandem with some form of a refund on business taxes.

The refunds are popular among business groups and could increase pressure on Republicans to support Obama's massive stimulus package, even though most of them are wary of government spending increases that could send its total cost to $800 billion or more.

"This gives companies an infusion of cash just when they need it," Dorothy Coleman of the National Association of Manufacturers said of the proposed refunds.

The refund provision would enable some companies posting losses last year to get refunds for taxes paid as far back as five years earlier. The businesses could refile their old tax returns, using the losses suffered last year to offset profits made when times were good.

Do you think tax refunds are a wise way to stimulate the economy? Share your thoughts below.

(Photo Credit: AP)

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