Obama Tax Proposals Get Cool Reception Despite Agreement on R&D

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Lawmakers and analysts say President Obama's new proposals to encourage business spending and make the R&D credit permanent are worthy of bipartisan support, but the lack of details about offsets and his stance on tax increases for high-income households may make the ideas a tough sell. Obama formally announces that he wants to see Congress take up a proposal allowing companies to fully deduct qualified capital investments through the end of 2011, and a proposal for an enhanced, permanent R&D tax credit. “The possibility or probability that [a permanent R&D credit] would be matched with tax increases on business would cancel out the benefits,” complains Dorothy Coleman of the National Association of Manufacturers.