Democrats Oppose Tax Cuts

AP Barack Obama

President-elect Barack Obama's proposed tax cuts are running into opposition from senators in his own party who say they won't do much to stimulate the economy or create jobs.

Senators from both parties agreed that Congress should do something to stimulate the economy. But senators emerging from a private meeting of the Senate Finance Committee on Thursday said that tax portion of Obama's stimulus plan is unworkable.

They were especially critical of a proposed $3,000 tax credit for companies that hire or retrain workers. Democratic Sen. Kent Conrad of North Dakota described it as "misdirected."

The cost of the economic rescue package Obama wants is expected to swell to more than $800 billion or more. About $300 billion of that would be tax cuts or refunds for individuals and businesses.

For Investors

• Busch: Obama Drama
• Dow 11,000 on 'Obama Bounce'?
• Hunting for Value in Consumer Staples
• Cramer's Top Five Dow Stocks
• Stock Picks Over Troubled Waters

© 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.