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Obama to Pitch Economic Proposals 09/08 08:09
Seeking to give anxious Democrats a boost ahead of the November elections,
President Barack Obama is pitching a trio of economic initiatives Wednesday and
voicing unwavering opposition to Bush-era tax breaks for the wealthy.
WASHINGTON (AP) -- Seeking to give anxious Democrats a boost ahead of the
November elections, President Barack Obama is pitching a trio of economic
initiatives Wednesday and voicing unwavering opposition to Bush-era tax breaks
for the wealthy.
With the tax breaks for the top two percent of income earners set to expire
at the end of the year, the White House sees the issue as an opportunity to
draw a stark contrast with Republicans. In a speech in Cleveland Wednesday,
Obama will argue that the tax cuts for the wealthy would add $700 billion to
the deficit, a sum the country can't afford as the economy struggles to recover.
Obama will also outline a package of infrastructure investments and business
tax incentives that the White House says will put the economy on a path toward
long-term growth while also allowing for some immediate job creation.
But with Washington's already heated partisanship likely to escalate as the
midterm elections approach, it's uncertain whether Congress could pass any of
the incentives in time to help the economy --- and Democrats --- before
November.
In fact, House Republican Leader John Boehner, R-Ohio, surfaced his own
proposals Wednesday, saying in a nationally broadcast network interview that
Congress should freeze all tax rates for two years and should cut federal
spending to the levels of 2008, before the deep recession took hold of the
economy.
"People are asking, 'Where are the jobs?' " Boehner said, calling the White
House "out of touch" with the American public.
Obama is asking Congress to consider three proposals:
--- A $50 billion infrastructure investment to rebuild and repair the
nation's roads, railways and runways.
--- A permanent extension of research and development tax credits for
businesses.
--- Tax breaks to let businesses quickly write off 100 percent of their
spending on new plants and equipment through 2011.
Senior administration officials said the three proposals would be the full
extent of new economic policies the president would announce before the
midterms, eliminating the possibility of a pre-election freeze on payroll
taxes, an idea supported by many businesses.
The officials, who spoke on the condition of anonymity to preview the
president's speech, said Obama would draw a contrast between his economic
proposals and those of the GOP, going so far as to give his remarks in the same
city where Boehner outlined the Republican economic agenda last month. Boehner
at the time called for the ouster of Treasury Secretary Timothy Geithner and
key White House economics adviser Larry Summers.
As he often does, Obama will paint Republican leaders as seeking a return to
what he calls the failed economic policies of the past, singling out Boehner's
call to extend tax cuts for the wealthy that were enacted by former President
George W. Bush.
Obama and Democrats have long said they want to renew the tax cuts only for
households earning under $250,000 a year, a policy difference with Republicans
that administration officials said Obama would portray as a difference in the
parties' values.
Senior White House adviser David Axelrod said Wednesday "the middle class
has treaded water and lost ground" during the past decade. "What we can't
afford is another $700 billion in tax cuts for millionaires and billionaires.
More than half of those tax cuts would go to people making over $8 million a
year. Doesn't make sense."
Some of the proposals Obama was to outline Wednesday have enjoyed broad
bipartisan support in the past. That creates a dilemma for Republicans, who
could be forced to choose between handing the president legislative victories
ahead of the election or saying no to ideas they've previously supported.
The White House made no apologies for unveiling its proposals during the
contentious pre-election months.
"We understand what season we've entered in Washington," said press
secretary Robert Gibbs. Even if Congress doesn't take up Obama's new proposals
before the elections, Gibbs said, "the president and the economic team still
believe that these represent some very important ideas."
Mindful of the public's anger over the mounting federal deficit, the White
House has carefully avoided calling the new economic proposals a stimulus plan,
like the $814 billion economic package Congress passed last year.
Even with fresh proposals in hand, officials said the president would
continue to prod the Senate to pass a bill that calls for about $12 billion in
tax breaks for small businesses and a $30 billion fund to help unfreeze small
business lending. Republicans have likened the bill to the unpopular bailout of
the financial industry.
Boehner was interviewed on ABC's "Good Morning America," and Axelrod
appeared on CBS's "The Early Show," and NBC's "Today" show.
(KA)
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