Obama's 'New Economic Plan': Too Little, Too Late?

Republicans criticize expected proposal of tax cuts to be announced this week.

ByABC News
September 5, 2010, 9:18 PM

WASHINGTON, Sept. 5, 2010— -- Back from Camp David today, President Obama is preparing to hit the campaign trail Monday unveiling his "new economic plan," with additional tax cuts, but Republicans are already dubbing it too little, too late.

The plan is scheduled to be formally unveiled Wednesday during a speech in Cleveland, and Democrats must hope that it will be enough to jump-start the country's beleaguered economy if they are to be able to retain control of Congress.

The new plan implies a sort of political dare, challenging Republicans not to pass popular tax cuts before the November elections.

It may seem counterintuitive for the president to intend for Republicans to block his proposed tax credits, but many pundits believe that such an outcome would benefit the Democrats' congressional interests.

"It allows him to define the Republicans as the party of no," says Karen Finley, a Democratic consultant. "If Democrats seize on that opportunity, I think that's a great opportunity for Democrats."

This sort of sly maneuver is crucial for the Democrats at this stage of the game because the most recent polls show that Republicans are gaining ground -- even in traditionally Democratic areas, likes California and Wisconsin -- and becoming increasingly confident that they will take back control of the House.

"What you're seeing right now is this real groundswell of anger against the Democrats and against their agenda," says Kevin Madden, a Republican consultant. "Folks are looking for the alternative and the alternative happens to be the Republicans."

And Republicans say they don't believe the president's new proposals will help his party's cause. On "Fox News Sunday," Republican Sen. John McCain accused Obama of having no plan at all.