What will Obama say about jobs? The pre-speech maneuvering begins.
In the run-up to his much-anticipated jobs speech Thursday, Obama challenged the GOP to put 'country before party.' The Republican response: 'Your economic proposals don't work.'
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Neither Republicans nor the administration should consider their jobs packages an “all-or-nothing situation”, wrote Boehner and Cantor.
Is it possible that Obama and Boehner could strike some kind of bargain and produce another piece of legislation aimed at getting the economy moving again? (Don’t use the “stimulus” word. That’s got a bad reputation in Washington at the moment.)
Anything is possible in politics, so it’s possible. Republicans might agree to spend some limited amount on highway infrastructure projects. Couple that with an endorsement by the president of an extension of the payroll tax cut, and perhaps some other tax reductions and one might get a bill that could pass.
But at a recent Brookings Institution seminar titled, What President Obama Should Propose in His Speech on Jobs and the Economy, economists held out little hope for a grand agreement.
“I think realistically the only policy the House of Representatives would approve is the tax cuts,” said Brookings senior fellow Martin Baily.
Extending the payroll tax rebate would simply extend the status quo, not give the economy an extra boost, said Baily.
Another much-discussed tax proposal – a tax holiday for corporations to repatriate cash they have earned overseas and have parked in foreign banks, is a “bad idea”, said Brookings tax policy expert William Gale.
“When we did this earlier in the decade, there was no discernable effect on jobs,” said Gale.
“But if we’re concerned with what’s going to have an effect over the next year or two, then I don’t think passing the free trade arrangement with Korea and other countries is going to do that much,” said Mr. Mussa.
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