CHATTANOOGA, Tenn. — President Obama came to a cavernous Amazon distribution center here Tuesday and backed a cut in corporate tax rates in return for a pledge from Republicans to invest in more programs to generate middle-class jobs.
For two years, Republicans have rejected most of Mr. Obama’s initiatives to create jobs, in part because, to avoid increasing the budget deficit, he has paired those ideas with proposals to repeal or reduce tax breaks for wealthy individuals and corporations, especially oil companies.
The proposal, an effort to break a stalemate with Republicans over budget policy, comes as Mr. Obama and his Congressional opposition are headed toward a showdown in the fall over taxes and spending.
With a sea of cardboard boxes serving as a backdrop, Mr. Obama described a “grand bargain” for the middle class that he said would stimulate the economy while giving businesses the lower tax rates they have long sought.
“If folks in Washington really want a ‘grand bargain,’ how about a grand bargain for middle-class jobs?” Mr. Obama told a crowd of 2,000. “If we’re going to give businesses a better deal,” he added, “we’re going to give workers a better deal, too.”
It was the president’s first concrete proposal in an economic offensive that he inaugurated last week in Illinois to set his terms for coming budget battles with the Republican-controlled House.
Source: New York Times, Original Title: Obama Proposes Deal Over Taxes and Jobs