Obama Stimulus Plan Boosts Business Tax Refunds

WASHINGTON (AP) - President-elect Barack Obama's proposed stimulus package would provide businesses with billions of dollars in refunds on taxes they paid several years ago.

A U.S. Chamber of Commerce official says this idea is "at the top of the list from businesses' viewpoint." It could also increase pressure on Republicans to support Obama's massive stimulus package.

The refund provision would enable some companies posting losses last year to get refunds for taxes paid as far back as five years ago.

Currently, businesses can use losses to offset profits the two previous years.

The government may also give tax cuts to individuals by withholding less from paychecks, making them about $10 larger each week.

Companies that hire new workers would also get a 1-year tax credit.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.