The Obama administration is today going to propose a cut in the corporate tax rate from 35 percent to 28 percent, according to multiple reports. NPR's Scott Horsley notes that the president also wants to scale back some deductions that businesses now get. So, the overall effect of any such changes could be "revenue neutral" and keep corporations' share of the nation's tax burden unchanged, Scott says.
A big reason for the slow recovery has been that the nation's battered banks haven't been able or willing to lend. There are signs that's changing and that bank lending is helping to support stronger growth.
Paul Kasriel, chief economist at Northern Trust, a Chicago-based bank, say his reading of Federal Reserve data has convinced him that banks have finally taken the baton from the Fed and are now making credit more available.
"We've seen a sharp increase in business loans on the books of banks," he says.
Hourly workers at General Motors will soon be getting profit-sharing checks of up to $7,000 each after the automaker reported record earnings this week. President Obama may also get a political dividend, two and a half years after a government-engineered turnaround.
Obama reminded a group of United Auto Worker members this week that, back in 2009, his rescue of GM and Chrysler had plenty of critics.