In the fourth speech he’s delivering to lay out his vision for America’s economic future, President Obama in Chattanooga, Tenn., Tuesday will offer a new “grand bargain” to Republicans in an effort to break the impasse over the deficit and help move things along as Congress faces looming budget deadlines. The proposal: Cutting corporate tax rates in exchange for job investments, the White House confirmed to CBS News.
“As part of his efforts to focus Washington on the middle class … 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,” Obama senior adviser Dan Pfeiffer told the Associated Press.
Senior administration officials described the corporate tax proposal to the Associated Press as the first new economic idea Mr. Obama plans to offer in the coming months, as Congress faces looming budget deadlines this fall.
No price tag on the proposal has been offered up yet – that would come through talks with Congress – however, the administration officials told the AP that money to pay for the jobs creation part of the proposal would come from a one-time revenue boost from measures such as changing depreciation rules or having a one-time fee on earnings held overseas.
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