by Erica Werner, Associated Press
WASHINGTON (AP) — In a sharp challenge to the GOP, President Barack Obama proposed paying for his
costly new jobs plan Monday with tax hikes that Republicans have
already emphatically rejected. The reception to his new proposal was
no more welcoming, setting the stage for a likely new fight with
Flanked at the White House by workers he said the legislation would help, Obama declared, “This is the
bill that Congress needs to pass. No games. No politics. No delays.”
He sent it to Capitol Hill saying, “The only thing that’s
stopping it is politics.”
The president’s proposal drew criticism from House Speaker John Boehner, who’d previously responded in
cautious but somewhat receptive tones to the $447 billion jobs plan
made up of tax cuts and new spending that Obama first proposed in an
address to Congress last Thursday.
“It would be fair to say this tax increase on job creators is the kind of proposal both parties have
opposed in the past. We remain eager to work together on ways to
support job growth, but this proposal doesn’t appear to have been
offered in that bipartisan spirit,” Boehner spokesman Brendan
The biggest piece of the payment plan would raise about $400 billion by eliminating certain deductions,
including on charitable contributions, that can be claimed by wealthy
Obama has proposed that in the past —to help pay for his health care overhaul, for example — and it’s
been shot down by Republican lawmakers along with some Democrats.
Yet by daring Republicans anew to reject tax hikes on the rich Obama could gain a talking point as the
2012 presidential campaign moves forward, if not a legislative
At a Rose Garden event Monday, Obama brandished his jobs bill and surrounded himself with police officers,
firefighters, teachers, construction workers and others he said would
be helped by it. Adopting a newly combative tone that’s been welcomed
by dispirited Democrats, Obama demanded immediate action on the
legislation, which the White House sent to Capitol Hill Monday
“Instead of just talking about America’s job creators, let’s actually do something for America’s job creators,” he said.
Late in the day, he told a group of Spanish-language reporters that if Congress agreed to just a portion
of the bill he would accept it while still fighting for more.
“I am going to put forward the entire bill and I have asked them to pass the entire bill. Obviously,
if they pass parts of it, I am not going to veto those parts,”
Obama said. “I will sign it, but I will then say, give me the
rest, and I will keep on making that argument.”
In the Rose Garden, he told of reading a quotation in a newspaper article from a Republican congressional
aide who questioned why Republicans should work with Obama since the
result might just be to help the president politically. “That was very explicit,” Obama said.
Buck, the Boehner spokesman, said the anonymous quote cited by the president didn’t reflect the view of
And even as Obama was accusing Republicans of playing politics, he and his Democratic allies were
marshaling an aggressive political response of their own.
Obama was traveling to Boehner’s home state of Ohio Tuesday to promote his jobs plan, and following that
with a trip Wednesday to North Carolina, a traditionally Republican
state he won in 2008.
He was getting backup from the Democratic National Committee, which announced a television ad
campaign starting Monday to promote Obama’s jobs plans in key swing
and early-voting states and to call on voters to pressure their
lawmakers for support. The ads urge viewers to “Read it. Fight
for ….. it. … Pass the President’s Jobs Plan.”
The back-and-forth was taking on elements of a political campaign, with high stakes for both sides as
Obama heads into his re-election fight with the economy stalled,
unemployment stuck at 9.1 percent and polls showing deep public
unhappiness with his leadership on the economy.
In an appearance later Monday for a group of African-American news Web sites, Obama suggested that even a
legislative loss for his plan could translate into a political win
“I need people to be out there promoting this and pushing this and making sure that everybody
understands the details of what this would mean, so that one of two
things happen: Either Congress gets it done, or if Congress doesn’t
get it done people know exactly what’s holding it up,” the
The jobs package would combine tax cuts for workers and employers by reducing the Social Security payroll
tax, with spending elements including more money to hire teachers,
rebuild schools and pay unemployment benefits. There are also tax
credits to encourage businesses to hire veterans and the long-term
The White House, which has gotten burned in the past by making overly optimistic job-creation
predictions, has avoided estimating how many jobs the package would
create. But in an interview Monday on NBC News, Obama embraced an
estimate from an outside economist, Mark Zandi of Moody’s Analytics,
and said the bill “could mean an additional 2 million jobs.”
The payment method the White House announced Monday would consist of:
• $405 billion from limiting the itemized deductions for charitable contributions and other deductions
that can be taken by individuals making over $200,000 a year and
families making over $250,000;
• $41 billion from closing loopholes for oil and gas companies;
• $18 billion from requiring fund managers to pay higher taxes on certain income;
• $3 billion from changing the tax treatment of corporate jets.
White House Budget Director Jacob Lew said that Obama will also include those tax proposals in a broader
debt-cutting package he plans to submit next week to a congressional
“supercommittee” charged with finding $1.2 trillion in
savings later this year. He said that the supercommittee would have
the option of accepting the payment mechanisms for the jobs bill
proposed by Obama, or proposing new ones.
Republicans have indicated they’re receptive to supporting Obama’s proposed payroll tax cut and finding
a way to extend unemployment benefits, though many have rejected
Obama’s planned new spending. Obama’s new proposal Monday to pay for
it all by raising taxes without any proposals to cut spending is
unlikely to win him any new GOP support for any element of his plan.
“I sure hope that the president is not suggesting that we pay for his proposals with a massive tax
increase at the end of 2012 on job creators that we’re actually
counting on to reduce unemployment,” said House Majority Leader
Eric Cantor (R-Va).
The new DNC ads are airing in: Denver; Tampa and Orlando, Fla.; Des Moines, Iowa; Las Vegas; Manchester,
N.H.; Raleigh and Charlotte, N.C.; Columbus and Cleveland, Ohio and
Norfolk, Richmond and Roanoke, Va.; as well as Washington, D.C.
Associated Press writers Luis Alonso Lugo, Julie Pace and Darlene Superville contributed to this report.
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