President Obama announced yesterday that he is currently working with Congressional leaders on a new economic stimulus package that will include tax cuts and new spending. Many of the initiatives outlined include incentives for businesses to create jobs, construction spending for roads and other infrastructure projects, and weatherizing rebates for homeowners. Consideration of the proposed legislation will not occur until early next year. As reported today in The New York Times:

The president’s new proposals include eliminating capital gains taxes on small business investment and creating “cash for caulkers” rebates for consumers who invest in home-weatherization projects — an idea modeled on the popular “cash for clunkers” program that increased auto sales over the summer.

Most of Mr. Obama’s proposals, however, expanded on the original stimulus package, which was intended to work over several years and was passed when 700,000 jobs a month were being lost. The economy lost 11,000 jobs last month.

The elimination of capital gains taxes would expand on a break in the stimulus law, which let small businesses exclude 75 percent of gains from taxes.

Mr. Obama also would extend through 2010 a break allowing small businesses to immediately write off as much as $250,000 in qualified investments, and a second break allowing small and large businesses to deduct more capital expenses upfront.

With small businesses complaining that they cannot get bank loans, Mr. Obama proposed to eliminate fees and increase government guarantees in 2010 for loans from the Small Business Administration. He said the Treasury would step up loans to small businesses from the bank bailout fund, the Troubled Asset Relief Program.

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