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

African States Push to Keep Boko Haram Offline

Central African telecoms ministers working with Nigeria to block all videos posted by Boko Haram in effort to blunt Nigerian militant group's propaganda More

Falling Oil Prices, Internet-Savvy Youth Pose Challenge for Gulf Monarchies

Across the Gulf, younger generations are putting a strain on traditional politics More

Philippines Call Center Workers Face Challenges

Country has world’s largest business process outsourcing, or BPO, industry, employing some one-million workers 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.
US Supreme Court Hears Hijab Discrimination Casei
X
Katherine Gypson
February 25, 2015 11:30 PM
The U.S. Supreme Court has heard opening arguments in a workplace religious discrimination case that examines whether a clothing store can refuse to hire a young woman for wearing the headscarf she says is a symbol of her Muslim faith. Katherine Gypson reports from the Supreme Court.
Video

Video US Supreme Court Hears Hijab Discrimination Case

The U.S. Supreme Court has heard opening arguments in a workplace religious discrimination case that examines whether a clothing store can refuse to hire a young woman for wearing the headscarf she says is a symbol of her Muslim faith. Katherine Gypson reports from the Supreme Court.
Video

Video Falling Gas Prices Hurt Nascent Illinois Hydraulic Fracturing Industry

Falling oil prices are helping consumers purchase cheaper petroleum at the pump. But that’s made hydraulic fracturing or “fracking” less economically viable for the companies in the United States invested in the process. VOA’s Kane Farabaugh reports on one Midwestern town that was hoping to change its fortunes by cashing in on the next big U.S. oil boom.
Video

Video Fighting in Sudan's South Kordofan Fuels Mass Displacement

Heavy fighting in Sudan's South Kordofan state is causing hundreds of thousands to flee into uncertain conditions. Local aid organizations estimate as many as 400,000 civilians have been internally displaced since the conflict began more than three years ago, while another 250,000 have fled across the border to refugee camps in South Sudan. VOA's Adam Bailes reports.
Video

Video Lao Dam Project Runs Into Opposition

A Lao dam project on a section of the Mekong River is drawing opposition from local fishermen, international environmental groups and neighboring countries. VOA's Say Mony visited the region to investigate the concerns. Colin Lovett narrates.
Video

Video A Filmmaker Discovers Her Biracial Identity in "Little White Lie

Lacey Schwartz grew up in an upper middle-class Jewish family, in a town in upstate New York where almost everyone she knew was white. She assumed that she was, as well. Her recent documentary, Little White Lie, tells the story of how she uncovered the secret of her true racial background. VOA’s Carolyn Weaver has more on the film.
Video

Video Deep Under Antarctic Ice Sheet, Life!

With the end of summer in the Southern hemisphere, the Antarctic research season is over. Scientists from Northern Illinois University are back in their laboratory after a 3-month expedition on the Ross Ice Shelf, the world’s largest floating ice sheet. As VOA’s Rosanne Skirble reports, they hope to find clues to explain the dynamics of the rapidly melting ice and its impact on sea level rise.
Video

Video US-Cuba Normalization Talks Resume Friday

Negotiations aimed at normalizing diplomatic relations between the U.S. and Cuba resume Friday. On the table: lifting a half-century trade embargo and easing banking and travel restrictions. There's opposition in Congress, but some analysts say there may be sufficient political and economic incentives in both nations for a potential breakthrough this year. VOA's Mil Arcega reports.
Video

Video Pakistan's Deadline For SIM Registration Has Cellphone Users Scrambling

Pakistani cell phone users have until midnight Thursday to register their SIM cards, or their service will be cut off. While some privacy experts worry about government intrusion, many Pakistanis are just worried about keeping their phone lines open. VOA Deewa reporter Arshad Muhmand has more from Peshawar.
Video

Video Myanmar Warns Factory Workers to End Strikes

Outside Myanmar's main city Yangon, thousands of workers walked off their jobs earlier this month demanding a doubling of their wages, pay raises after a year and input from labor unions on industrial regulations. Since Friday, the standoff has grown more tense as police moved in to disrupt the sit-ins, resulting in clashes that injured people from both sides. VOA correspondent Steve Herman visited industrial zones which have become a focus of Myanmar's fledgling workers rights movement.
Video

Video Oscar Winners Do More Than Thank the Academy

The Academy Awards presentation is Hollywood’s night to reward the best movies from the previous year. It’s typically a lot of glitter, a lot of thank you’s, a lot of speeches. But many of this year’s speeches carried messages beyond the thank you's. VOA’s Carolyn Presutti takes a look.

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

World Currencies

EUR
USD
0.8896
JPY
USD
119.26
GBP
USD
0.6475
CAD
USD
1.2451
INR
USD
61.816

Rates may not be current.