President Obama to Give Major Jobs, Stimulus, Deficit-cutting Speech After Labor Day

August 18, 2011 05:21 AM

.via a special arrangement with Informa Economics, Inc.

President hints at some ideas being considered

NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.

President Obama said he will press Congress for a new round of stimulus spending and tax cuts to help spur the economy and promote job growth. Obama will detail his ideas, including deficit/debt reduction, in a major address shortly after Labor Day, when he and lawmakers return from vacation, the White House announced.

Some ideas being mulled and/or mentioned already include:

  • Proposing tax cuts for companies hiring new workers, especially jobless workers

  • Renewal of an expiring payroll tax cut, perhaps extending that to an employer payroll tax cut

  • Renewed tax write-offs for business' capital investments

  • Overhaul of patent law

  • State and city aid for teachers

  • New spending for roads and construction, including a new "infrastructure bank" to finance highway and rail construction, public-works projects of regional and national significance, and equipment for planes to link up to a new satellite-based air traffic-control network. The assistance would be luring more private capital to infrastructure projects via low-interest loans. Under the White House plan, the infrastructure bank wold be in addition to current highway and transit programs. The bank would receive $30 billion over six years and would issue grants, loans and other financial tools. Some lawmakers have previously objected to offering grants, which they have called another government handout.

  • Other ways to encourage construction more quickly than via getting an infrastructure bank in place and operating

  • Aid targeting long-term unemployed, including overhaul of unemployment insurance that would make the program more flexible

  • Mortgage relief for homeowners perhaps via executive order

  • Passage of three long-pending FTAs with South Korea, Colombia and Panama

  • More deficit/debt savings than the $1.5 trillion the congressional Super Committee will consider

Obama in recent days has indicated that short-term spending can lead to long-term savings. "We can't afford to just do one or the other. We've got to do both," Obama said in northwestern Illinois, the last stop of his three-day tour through the rural Midwest.

As for asking Congress to go beyond cutting $1.5 trillion over a decade, Obama said the ultimate goal should be $4 trillion in savings over 10 years. "We'll have more spending cuts than we have revenue," he said, after expressing concern that House Speaker John Boehner (R-Ohio) had named Republicans to the Super Committee who oppose any tax increases.

It did not take long for some GOP leaders to respond. "We must put an end to the policy uncertainty constantly being driven by this administration," House Majority Leader Eric Cantor (R-Va.) wrote in a memo to colleagues. "That means stopping the discussions of new stimulus spending with money that we simply do not have."

Senate Minority Leader Mitch McConnell (R-Ky.) criticized "job-killing tax increases" and said, "Continuing the spending spree on failed stimulus programs won't shrink the deficit."

From a 2012 election viewpoint, and clearly seeing and expecting GOP resistance from Congress, Obama said, "My attitude is, get it done. And if they don't get it done, then we'll be running against a Congress that's not doing anything for the American people, nd the choice will be very stark and will be very clear."

Comments: Some economists are already calling this the 'Duh' and 'Finally' Plan.


NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.






Back to news



Spell Check

No comments have been posted to this News Article

Corn College TV Education Series


Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!


Market Data provided by
Brought to you by Beyer