The proposed federal economic stimulus package passed by the US House is roughly two thirds spending and one third tax cuts. On Thursday we talked about the two billion dollars Oregon might get to repair roads, fix public housing, wisen up the electric grid and more. Monday we’ll look at how the variety of tax changes might play out in the Northwest.
First off, there’s a basic fight about whether spending or tax breaks work better to spur the economy. Then there’s just a heck of a lot of tax cut proposals in the stimulus bill. There are credits for workers, new homeowners could benefit, and income tax cuts would depend on your income. Some families paying for college would get a break. Businesses may get tax savings aimed at increasing capital and renewable energy investments.
The state legislature is also turning to spending and tax cuts as a way to stimulate the economy. What tax changes would help you or your business most — and ripple fastest through the Northwest economy?