MercoPress. South Atlantic News Agency

Republicans say Obama 450bn jobs plan proposals “merit consideration”

Obama called on Congress to end the ‘political circus’

President Barack Obama urged Thursday evening a joint session of the US Congress to end what he calls the “political circus” in Washington, and move rapidly to approve job creation legislation he is sending to Capitol Hill. There was no official rebuttal from the opposition Republicans.

The president designed his speech to substantially raise the stakes in his struggle with Republicans over how to address stubborn 9.1% unemployment, and continue to fix the US fiscal woes.

Urged by fellow Democrats to put forward the boldest possible proposals, he unveiled a legislative package estimated at 450 billion dollars, including extended payroll tax cuts for workers and employers, and incentives for businesses to hire.

As a spending bill, what he is calling The American Jobs Act would be considered and voted on first by the Republican-controlled House of Representatives.

President Obama says the Jobs Act would provide a jolt to a stalled economy.

“I am sending this Congress a plan that you should pass right away. It’s called the American Jobs Act. There should be nothing controversial about this piece of legislation. Everything in here is the kind of proposal that’s been supported by both Democrats and Republicans - including many who sit here tonight. And everything in this bill will be paid for. Everything,” Mr. Obama said.

Obama's speech came after months of difficult political battles with Republicans over how to lower government deficits and the 14 trillion dollars national debt.

A compromise this past July provided for 1 trillion dollars in spending cuts linked to raising the national debt ceiling, but also led to a harmful downgrading of the government's credit rating.

Obama made a point of underscoring past bipartisan support for proposals in his jobs package. And he called on Democrats and Republicans to end the political warfare to put people back to work and the economy back on track.

“The people of this country work hard to meet their responsibilities. The question tonight is whether we’ll meet ours. The question is whether, in the face of an ongoing national crisis, we can stop the political circus and actually do something to help the economy; whether we can restore some of the fairness and security that has defined this nation since our beginning,” Mr. Obama said.

Key aspects include proposals to rebuild and modernize US infrastructure and schools, financial aid to cash-poor state and local governments, job training to help the long-term unemployed, and steps to encourage hiring of military veterans.

Mr. Obama said the wealthiest Americans and large corporations should pay more through elimination of tax loopholes, and repeated his call for a balanced plan that would include “modest adjustments” in expensive government health care programs.

The president plans to send Congress a more ambitious plan in 10 days that will include the cost of his jobs proposal and steps to stabilize the US debt in the long run. And he is asking the bipartisan congressional committee created by the debt and deficit deal to find more than the 1.5 trillion dollars in additional savings it is tasked with identifying.

In initial reaction, Republican House Speaker John Boehner said Mr. Obama proposals “merit consideration” adding that he hopes the president gives serious consideration to Republican proposals. Other Republicans had harsher assessments.

Republican Senator Orrin Hatch voiced skepticism, but said he would wait for details of the plan. “I'm going to give it a good look and hopefully support the president, but right now it looks to me like more of the same,” Hatch said.

At a press conference Tea Party member Michele Bachmann said the speech offered nothing new or that had not been tried before, “it was I believe nothing more than a political speech”.
Further on the Minnesota representative said that “the president is politically paralyzed and philosophically incapable of doing what needs to be done”.

Statements from key Democratic leaders praised Obama, saying he had laid out reasonable proposals to tackle unemployment that will be paid for as part of broader debt and deficit reduction efforts.

In his address, Mr. Obama said while some lawmakers might feel differences can be resolved only through the ballot box, Americans “living paycheck to paycheck” need a Congress that will act now.

“Know this: the next election is fourteen months away. And the people who sent us here - the people who hired us to work for them - they don’t have the luxury of waiting fourteen months,” the president said.

The president said he will be traveling in coming weeks to urge public support for his jobs proposal, and to urge Americans to tell Congress that ”doing nothing is not an option.