President Obama’s proposed job-creation package will institute some $300 billion in tax cuts and government spending, the U.S. media are reporting. Obama is set to announce his new jobs package in a nationally televised speech to Congress on Thursday. The price tag of the new package would be offset by other cuts Obama will outline tomorrow.
Bloomberg News has reported that the plan will inject over $300 billion into the economy in 2012 through tax cuts, spending on infrastructure, and aid to state and local governments. The costs would be offset by raising tax revenues as part of a deficit-cutting proposal Obama will outline next week.
Though Obama’s aides have refused to comment on the size of the package or provide many specifics, they have said that it will have a “quick and positive” impact on boosting jobs. “We need to do things that will have a direct impact in the short-term to grow the economy and create jobs, and the president will put forward proposals that will do just that,” said White House spokesman Jay Carney.
Nearly half of the stimulus will be made up of tax cuts, including an extension of a payroll tax cut paid by workers, as well as a decrease in the amount paid by employers. Aid to state and local governments will focus on preventing layoffs of teachers and first responders.
With the unemployment rate still hovering above 9%, Obama needs Congressional support for his measures in order to give the economy a much-needed boost, but he will meet opposition from Republicans who object to more government spending, which would seem to thwart efforts this summer to enact a deficit-reduction plan that significantly cut government spending, though it left the tax code untouched.