Obama will propose plans regarding job creation, debt reduction

President Obama plans to issue proposals to Congress that involve another round of stimulus spending and tax cuts, according to The Washington Post. He will share his ideas in a major address when he and Congress return from vacation after Labor Day.

Obama is considering tax cuts for companies that hire workers, new spending for roads and construction and other actions that would help the long-term unemployed. He also plans to push for deficit reduction and identifying even more savings than the $1.5 trillion the special congressional committee currently needs to find.

Obama is expected to pressure Republican lawmakers to support additional spending in the short term; many Democrats were frustrated when the White House allowed Republicans to focus solely on deficit reduction during the recent debt-ceiling negotiations.

"When Congress gets back in September, my basic argument to them is this: We should not have to choose between getting our fiscal house in order and jobs and growth," Obama recently said in a stop in Atkinson, Ill., during his bus tour through the Midwest.

The White House is faced with the challenge of voters who want to see significant debt reduction and may not want to see any program that boosts spending. And Republican lawmakers have signaled they are unlikely to support new spending.

Various independent economists agree that the economic recovery requires working to boost the economy now with spending increases and tax cuts, as well as trying to address the national debt during the next decade through spending cuts and tax increases once the economy has improved.

Date : 8/18/2011