Obama, GOP clash over proposed 'grand bargain'
President Obama plans to offer a new "grand bargain" Tuesday to break
a long-running budget impasse, but Republican leaders say it is no deal
at all.
In a speech at an Amazon shipping facility in
Chattanooga, Tenn., Obama will propose cuts in corporate tax rates – a
Republican priority – in exchange for more money for jobs programs, a
priority of the president.
"The president will call on Washington
to work on a grand bargain focused on middle-class jobs by pairing
reform of the business tax code with a significant investment in middle
class jobs," said White House senior adviser Dan Pfeiffer.
Republicans quickly
denounced Obama's idea as a new collection of old ideas, including
higher tax revenues to pay for jobs programs of questionable validity.
"The
tax hike it includes is going to dampen any boost businesses might
otherwise get to help our economy," said Senate Minority Mitch
McConnell, R-Ky. "In fact, it could actually hurt small businesses."
Among
the White House proposals: money for new infrastructure projects and
upgrades, an increased number of manufacturing institutes to help
develop new industries and businesses, and assistance to community
colleges to provide worker training.
Administration officials said
these plans can be financed by one-time revenue produced by corporate
tax changes, such as accelerated depreciation schedules and taxes from
overseas earnings.
Obama also plans to announce new
jobs-related executive orders during his speech in Chattanooga,
including a summit in the fall designed to encourage overseas firms to
locate jobs in the United States. The president plans to order his staff
to reach out to business executives, non-profits and other employers,
looking for ways to address the issue of long-time unemployment.
As
for the initial GOP criticism, White House communications director
Jennifer Palmieri said it would be "unfortunate" if Republicans "keep
closing the door" on plans to help the middle class.
Previous
attempts at "grand bargains" to break the budget stalemate have failed,
including efforts by Obama and Boehner to strike a major debt cutting
deal that included both budget cuts and higher taxes on the wealthy.
During his Tuesday trip to Chattanooga, Obama will tour an Amazon.com "fulfillment center" and speak on what the White House calls "a better bargain for the middle class."
The
speech "will focus on proposals to jump-start private sector job growth
and strengthen the manufacturing sector," said a White House statement.
It's the latest in a string of economic speeches that Obama began last week.
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