President Obama on Tuesday will propose linking an overhaul of business taxes and new spending on jobs in what aides say is his latest effort to break the an impasse in Congress — but House Republicans immediately shot down the idea.
Obama will unveil his proposal in Chattanooga, Tenn., as part of his summer campaign to highlight his economic message and frame the upcoming fall debate over the federal budget. The president is searching for ways to ease Republican opposition to his economic priorities, such as boosting hiring through spending on roads, bridges and other infrastructure.
The proposal attempts to capitalize on Republicans’ long-held desire to reduce corporate tax rates, which they say put U.S. companies in an uncompetitive position globally. Obama says he wants to overhaul the tax code and use some of the new federal revenue generated – likely by taxing foreign profits of U.S. corporations – to pay for domestic initiatives. Obama has proposed spending $50 billion on infrastructure in the next year.