Enlarge By Pablo Martinez Monsivais, AP President Obama gestures as he speaks on the economy at the Milwaukee Laborfest this week in Wisconsin. NEW TAXES? NEW TAXES? The most sweeping tax cuts in a generation are due to expire at the end of the year. Congress is set to take up the issue this month. If Congress does nothing, families at every income level face tax increases next year. 2011 Income Number of tax returns Average tax increase Less than $10,000 28,681,000 $70 $10,000 to $20,000 24,383,000 $410 $20,000 to $30,000 18,523,000 $756 $30,000 to $40,000 15,679,000 $893 $40,000 to $50,000 13,001,000 $923 $50,000 to $75,000 23,972,000 $1,126 $75,000 to $100,000 15,245,000 $1,837 $100,000 to $200,000 16,885,000 $3,672 $200,000 to $500,000 3,757,000 $7,187 $500,000 to $1 million 608,000 $18,092 $1 million and over 315,000 $101,587 Source: Joint Committee on Taxation Associated P ress President Obama's proposal to jolt a listless recovery with $180 billion worth of tax breaks and transportation projects left economists largely unimpressed Tuesday. "I don't think they're game-changers," says Mark Zandi, chief economist at Moody's Analytics. "I don't think they're going to add up to a lot of new jobs." The president will roll out his plan today in Parma, Ohio, but details have been dribbling out. The administration wants to spark economic growth by: •Letting businesses deduct from their tax bills 100% (up from 50%) of what they invest in new equipment through 2011. The deduction would give businesses $200 billion up-front; but it would cost the Treasury only $30 billion over the next decade because businesses would have gradually written off the value of the equipment anyway. TAX CUTS: Obama, Republicans renew battle "Corporations are sitting on over a trillion dollars in cash," says Chuck Marr, director of federal tax policy at the liberal Center on Budget and Policy Priorities. "This is an attempt to get them off the dime and start investing." But Marr says the White House would get better economic results by giving firms tax breaks for creating jobs, perhaps by exempting them from payroll taxes (for Social Security and Medicare) on new hires for a year. Zandi says companies probably wouldn't ramp up spending to take advantage of the deduction until next year: "Most companies are going to sit back and make sure the business landscape is safe before they jump in." •Expanding and making permanent the business tax credit for research and development. The credit has been extended 13 times since it was created in 1981, but often at the last minute, freezing investment in the meantime. The administration says the expanded credit would cost $100 billion over 10 years. Robert Atkinson, president of the Information Technology and Innovation Foundation, welcomes the move but says the credit should have been expanded even more. On Monday, the administration proposed spending $50 billion to rebuild 150,000 miles of roads, construct and maintain 4,000 miles of rail and fix or rebuild 150 miles of runway. "Contractors are hungry for work," says Ethan Pollack, policy analyst at the liberal Economic Policy Institute. Moody's Zandi and Princeton's Alan Blinder have estimated that every $1 of infrastructure spending generates $1.57 of economic growth. But Zandi says it will take time for the increased spending to help the sputtering economy. Guidelines: You share in the USA TODAY community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Use the "Report Abuse" button to make a difference. You share in the USA TODAY community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Use the "Report Abuse" button to make a difference. Read more