Club for Growth: Most Obama Cuts Won't Spur Growth

Most of the tax cuts that reportedly make up 40 percent of President-elect Barack Obama's stimulus package won't actually spur economic growth, according to the Club for Growth, a leading D.C.-based group of economic conservatives.

The group issued a statement today supporting Obama's decision to include tax cuts for businesses, but in the same statement it said the rest of Obama's proposed cuts won't do much.

"We are delighted to learn that the President-Elect is proposing to expand the expensing of capital purchases by businesses

"We give the President-Elect credit for recognizing the importance of tax cuts, but if he is serious about stimulating our struggling economy, he should embrace tax cuts that will give people an incentive to invest and produce. These include lower marginal income tax rates, lower corporate tax rates, and the elimination of the capital gains tax. Tax credits are certainly better than additional spending programs, but they do little to change incentives and encourage growth," Toomey said.

"We urge President-Elect Barack Obama to embrace a stimulus bill that will actually live up to its name and stimulate the economy."