President Barack Obama will extend a deal to Republicans in his speech in Chattanooga, TN today: corporate tax cuts in exchange for new jobs programs and investments.
This is Obama’s fourth speech in a series of talks he has devoted to the middle class and America’s economic future, CBS reports. If Republicans accept the tax overhaul that Obama is proposing, which according to Reuters will lower the current corporate tax rate of 35 percent to 28 percent and to 25 percent for manufacturers, the revenue generated through this tax cut will be used in building new infrastructure and improving education at community colleges, among other projects aimed at the middle class.
However, it appears that many Republicans are not prepared to accept the ‘grand bargain’.
Michael Steel, spokesman for House Speaker John Boehner, told Associated Press that “[t]his proposal allows President Obama to support President Obama’s position on taxes and President Obama’s position on spending, while leaving small businesses and American families behind.’’
Other GOP members are more open to the deal. According to The Wall Street Journal, White House Senator Ron Johnson (R-WI) is prepared “to listen to any proposal that would us more competitive,” agreeing that both a business tax cut and increased spending on infrastructure were necessary.
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