News / Economy

Obama Offers Corporate Tax Cuts Linked to Jobs

President Barack Obama gestures as he speaks at the Amazon fulfillment center in Chattanooga, Tennessee, July 30, 2013.
President Barack Obama gestures as he speaks at the Amazon fulfillment center in Chattanooga, Tennessee, July 30, 2013.
Kent Klein
U.S. President Barack Obama is proposing a compromise to help break a deadlock with opposition Republicans over his economic plans. 

On Tuesday the president went to a giant product distribution center for retailer Amazon.com in the southern city of Chattanooga, Tennessee, to announce his latest proposed “grand bargain” on the U.S. economy.

"So today, I came here to offer a framework that might help break through some of the political logjam in Washington, try to get Congress to start moving on some of these proven ideas," he said.

Obama offered to cut corporate tax rates in exchange for more spending on programs designed to create jobs for the middle class.

"If folks in Washington really want a grand bargain, how about a grand bargain for middle class jobs?" he asked. "How about a grand bargain for middle class jobs?"

White House officials have said the president’s proposal will be the first of a series of new economic ideas he will advance in the next few months. He said "serious people" in both parties should accept this deal.

"I am willing to work with Republicans on reforming our corporate tax code, as long as we use the money from transitioning to a simpler tax system for a significant investment in creating middle class jobs," he said. "That's the deal."

Republican lawmakers were quick to dismiss the ideas. Senate Minority Leader Mitch McConnell said Obama’s initiative is nothing new and makes no concessions to Republican demands.

"It is just a further-left version of a widely-panned plan he already proposed two years ago, this time with extra goodies for tax-and-spend liberals."

Both the president and Republicans have supported simplifying corporate tax rates. But Republicans disagree with the Obama plan to reform corporate tax policy separately from individual tax rates.

The president wants the revenue generated by the tax changes to be spent on enhancing infrastructure, manufacturing and education.

Tuesday’s appearance in Tennessee was Obama’s fifth trip in seven days to promote his economic plans. With Washington facing budget deadlines in the coming months, the president is trying to build public support for his economic initiatives.

In Washington, policy makers at the U.S. central bank, the Federal Reserve, are meeting. They are considering when they might begin to trim their $85-billion-a-month purchase of securities they have used to pump more money into the U.S. economy, the world's largest. They plan to announce any policy changes on Wednesday.

You May Like

Video British Fighters on Frontline of Islamic State Information War

It’s estimated that several hundred British citizens are fighting for Islamic State alongside other foreign jihadists More

Pakistan's Political Turmoil Again Shines Spotlight on Military

Thousands of protesters calling for PM Sharif to step down continue protests in front of parliament, as critics fear political impasse could spur another military coup More

Photogallery Ebola Quarantines Spark Anxiety in Liberian Capital

Food prices rise sharply as residents attempting purchases clash with security forces, leaving one person dead More

This forum has been closed.
Comment Sorting
Comments
     
by: Yoshi from: Sapporo
July 30, 2013 11:10 PM
The reduction of corporate tax, which is somewhat higher in Japan than other developed countries, is argued also by Abe's administration aiming at the rise of workers' wages and responding to the request from business sides. Yet it is still remained unimplemented because firms are not trusted if they actually use the savings to increase investment and employment instead of reserving them for a rainy day.


by: adipocere from: Alabama
July 30, 2013 6:42 PM
This is not a "grand bargain for middle class jobs," this is just more corporate spoon-feeding by politicians who have become as absurd as cartoon villains.


by: Shirley from: Menifee
July 30, 2013 5:55 PM
More tax cuts for the rich in exchange for a promise to hire some wage slaves. This is patently disgusting and anti-American. Return progressive taxation of 70 percent on the One Percent.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Native Bees May Help Save Cropsi
X
Deborah Block
August 22, 2014 12:23 AM
U.S. President Barack Obama has called for a federal strategy to promote the health of bees that have been declining. The honeybee has been waning due to parasites, disease and pesticides. Wild bees may be used to take over their role as crop pollinators. Scientists first need to learn a lot more about wild bees, says biologist Sam Droege, who is pioneering the first national inventory on native bees. VOA’s Deborah Block went to his research laboratory in Beltsville, Maryland, to bring you more.
Video

Video Native Bees May Help Save Crops

U.S. President Barack Obama has called for a federal strategy to promote the health of bees that have been declining. The honeybee has been waning due to parasites, disease and pesticides. Wild bees may be used to take over their role as crop pollinators. Scientists first need to learn a lot more about wild bees, says biologist Sam Droege, who is pioneering the first national inventory on native bees. VOA’s Deborah Block went to his research laboratory in Beltsville, Maryland, to bring you more.
Video

Video US Defense Officials Plan for Long-Term Strategy to Contain Islamic State

U.S. defense officials say American air strikes in Iraq have helped deter Islamic State militants for the time being, but that a broad international effort is needed to defeat the extremists permanently. Defense Secretary Chuck Hagel warned Thursday that the group formerly known as the Islamic State in Iraq and the Levant, or ISIL, is better organized, and financially and militarily stronger than any other known terrorist group. Zlatica Hoke has more.
Video

Video Drug-Resistant Malaria Spreads in Southeast Asia

On Thailand’s border with Myanmar, also known as Burma, a malaria research and treatment clinic is stepping up efforts to eliminate a drug-resistant form of the parasite - before it spreads abroad. Steve Sandford reports from Mae Sot, Thailand.
Video

Video Gaza Conflict, Hamas Popularity Challenge Abbas

The Palestinian unity government of Mahmoud Abbas has failed to convince Hamas to agree to Egyptian-negotiated terms with Israel on a Gaza cease-fire. VOA State Department Correspondent Scott Stearns reports on what the Gaza conflict means for President Abbas, with whom U.S. officials have worked for years on a two-state solution to the Israeli-Palestinian conflict.
Video

Video Nigeria's 'Nollywood' Movie Industry Rolls in High Gear

Twenty years after its birth in a video shop in Lagos, Nigeria's "Nollywood" is one of the most prolific film industries on earth. Despite low budgets and whirlwind production schedules, Nigerian films are wildly popular in Africa and industry professionals say they hope, in the future, their films will be as great in quality as they are in quantity. Heather Murdock has more for VOA from Lagos.
Video

Video UN Launches 'Biggest Aid Operation in 30 Years' in Iraq

The United Nations has launched what it describes as one of the biggest aid operations in 30 years in northern Iraq, as hundreds of thousands of refugees flee the extremist Sunni militant group calling itself the Islamic State. As Kurdish and Iraqi forces battle the Sunni insurgents, the fighting has forced more people to flee their homes. Kurdish authorities say the international community must act now to avert a humanitarian catastrophe. Henry Ridgwell reports for VOA from London.
Video

Video Cambodian American Hip Hop Artist Sings of Personal Struggles

A growing underground movement of Cambodian American hip hop artists is rapping about the struggles of living in urban America. Most, if not all of them, are refugees or children of refugees who came to the United States from Cambodia to escape the Khmer Rouge genocide of the 1970s. Through their music, the artists hope to give voice to immigrants who have been struggling quietly for years. Elizabeth Lee reports from Long Beach, California.
Video

Video African Media Tries to Educate Public About Ebola

While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.

AppleAndroid

World Currencies

EUR
USD
0.7492
JPY
USD
102.27
GBP
USD
0.5960
CAD
USD
1.0950
INR
USD
61.300

Rates may not be current.