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Carcieri criticizes Obama's stimulus plan

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PROVIDENCE -- Republican Gov. Don Carcieri called President Barack Obama's economic stimulus plan deeply flawed Thursday, saying it would not immediately create jobs, contains ill-advised spending and should include more tax cuts.

In a letter to the president, the Rhode Island governor said the plan should focus on providing relief to the unemployed and helping cash-strapped state governments avoid raising taxes. He also urged a "massive" tax reduction by lowering income tax withholdings for workers.

"More money in people's take-home pay will restore confidence in every household," Carcieri said.

Carcieri also said he supported federal financing for highway and bridge projects, and the federal government should absorb troubled asset-backed securities now playing havoc with the financial market.


Download: Gov. Carcieri's Letter To President Obama
Database: Stimulus Breakdown State-By-State

Carcieri has said he would use money from a stimulus package to help Rhode Island get out of a recession that began in 2007. The unemployment rate hit 10 percent in December, the second-worst in the nation behind Michigan. The governor has proposed deep cuts in state spending to balance big budget deficits.

Obama, a Democrat, urged the Senate on Thursday to pass a $900 billion spending plan to stave off more jobs losses and warned the recession could last for years if lawmakers do nothing. Senate Republicans are trying to reduce spending in the measure, add tax cuts and lower the cost of mortgages for millions of homeowners.

White House officials did not immediately return a phone call seeking comment on Carcieri's letter.

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