The US President Barack Obama has decided to support the new company tax breaks in order to regain the initiative of helping out the troubled companies. Obama will block minority of the Republicans in the Senate in order to help the companies to write off their investment costs until next year in the US. The Democratic party of the President could face a big loss in the elections of November because of the rising unemployment and slowness in the economic growth.
Last week Mr. Obama had criticized the Republican in his speech by saying the Republicans were holding up a bill which was aimed to help the small business firms. The Obama administration said the new tax breaks would save about 200 billion dollars of the companies over two years. According to the administration, the new plan will allow the companies to add incentives for their businesses and to increase the investments.