Sen. Ben Nelson said Wednesday he’ll take “a very careful, cautious look” at proposed new tax cuts to make sure they will stimulate the economy.

With the federal government staring at a trillion dollar deficit, Nelson said, it’s important to determine whether or which specific tax cuts will be truly stimulative.

In particular, Nelson said, he will “need some assurances” that specific new business tax cuts meet that test.

Nelson said he is prepared to support an extensive economic stimulus package that centers on infrastructure development.

Although that package will increase deficit spending, he said, America “could tumble into a long-term economic depression” without substantial stimulation of the economy now.

“If we don’t do this, how far down will the spiral go?” he asked.

“And what will be the damage then?”

Nelson addressed the economic challenge during a telephone news conference from Washington.

While he’s “generally on the same page” with President-elect Barack Obama on economic stimulus, infrastructure investment and energy policy, Nelson said, he will “need to see the details” of the new president’s plans.

Nelson said he supports investment in infrastructure improvements such as “shovel-ready” roads and bridges as well as community health centers and modernization of the nation’s electric grid.

The latter will open the opportunity for Nebraska and other states in the midwestern wind corridor to deliver wind-generated electricity to the nation’s population centers, he said.

Obama’s stimulus package also will include tax relief for middle-income families as well as targeted business tax breaks.

The cost of the plan has been estimated in the range of $675 billion to $775 billion.

The Congressional Budget Office on Wednesday estimated this fiscal year’s budget deficit will approach $1.2 trillion even before stimulus spending and without  counting expenditures in Iraq and Afghanistan.

Reach Don Walton at 473-7248 or at dwalton@journalstar.com.