As with any policy decision, Obama's choice to include tax cuts for individuals and businesses can by analyzed through at least two very different lenses: One, will the policy itself be effective? In this case of course, that means will the stimulus package actually function as the impetus to reverse the current economic downturn?  And two, what will be the political ramifications of pursuing this policy? Will Obama's chances of re-election ultimately be increased or decreased?  How about his ability to effectively govern?

It's not possible to neatly separate the two questions when it comes to the stimulus package.  If we are not on our way to a tangible economic recovery two years from now, the current popularity (or lack thereof) of the stimulus package will be completely irrelevant.  Results will no doubt trump political points in the long run. 

But in the meantime, Obama has a few other items on his agenda, namely new health care and energy initiatives.  And his ability to effectively transmute those ambitious goals into legislation, especially regarding getting bills passed in the Senate, will rely heavily on his popularity and whether he's established a bond of trust with at least a small handful of Republican congresspeople.

I don't know much about economics.  I don't like the sound of business tax cuts, and Krugman's arguments against them sound spot on to me.  But in terms of purely political maneuvering, they do make some sense.  Consider this latest poll from CNN (my emphasis):

A national poll indicates that nearly six in 10 Americans support an increase in spending to pump up the economy, and there are even higher levels of support for a plan that involves tax cuts.

Fifty-eight percent of those questioned in a CNN/Opinion Research Corp. survey released Sunday say they favor increased government spending to stimulate the economy, which has been in recession for more than a year. Four in 10 of those polled oppose increased spending of taxpayer dollars.

Support for the stimulus plan jumps 13 points -- to 71 percent -- when tax cuts for individuals and businesses are added to the package, and opposition drops 12 points, to 28 percent.

"Barack Obama's plan to reach out to Republican members of Congress with a tax-cut component to his stimulus package seems to be working with the GOP rank and file," CNN polling director Keating Holland said. "Most Republicans nationwide oppose a stimulus plan that only has increased spending in it. But support for a stimulus plan with tax cuts climbs to 70 percent among Republicans."

As massive as the current stimulus package is (and as even more massive as many wish it were), the bottom line is that it is Obama's first action in recessutating the economy, but most certainly not his last.  And further attempts to advance health care, energy, environmental and education plans will have a much greater chance of success if Obama is successful right out of the gates, enjoys a solid majority support from the American people, and has legislators across the aisle who feel that he's heard their voices and are therefore willing to work with him.

Don't get me wrong.  As a matter of principle I most definitely do not think Obama should be bending over backwards to appease Republicans.  But as his first major legislative move, having 70 percent support from the American people including 70 percent support from Republicans is some very, very solid footing to start out on.