Obama kicks off campaign with infrastructure plan

[frigidmagi]

MSNBC

President Barack Obama, scrambling to spur job creation, proposed a six-year plan on Monday to rebuild infrastructure with an initial $50 billion investment and prepared new business tax cuts.
"We are going to rebuild 150,000 miles of our roads -- that's enough to circle the world six times. ... We're going to lay and maintain 4,000 miles of our railways -- enough to stretch coast-to-coast," Obama told a labor rally in Milwaukee where several thousand supporters cheered his every line.

The infrastructure plan, one of several initiatives Obama is unveiling this week, was immediately criticized by Republicans, who many analysts predict could win control of the House of Representatives in November 2 congressional elections.

With fellow Democrats facing punishment from recession-weary voters in November, Obama is under pressure to do more to create jobs and bring down the stubbornly high 9.6 percent unemployment rate, even as economists agree he has few good options left.

An administration official said Obama will propose on Wednesday in Cleveland that businesses be allowed to write off all their new investments in plant and equipment through 2011.

The plan would cut business taxes by some $200 billion over two years, the official said. The administration hope is that businesses worried about the sagging U.S. economy will nonetheless want to take advantage of the tax break by going ahead with plans for plant and equipment investments.

Obama will also announce on Wednesday a proposal for the U.S. Congress to increase and permanently extend a tax credit for business research and development. It would cost $100 billion over 10 years.

Economists are skeptical any measures Obama takes now will make a swift difference in the $13.2 trillion U.S. economy. They point out that investments in infrastructure, for example, typically do not stimulate the economy quickly.

While Obama declared some jobs would be created immediately by the infrastructure overhaul, a senior administration official told reporters the plan would not create jobs until 2011.

"This is not a stimulus, immediate-jobs plan," the official said.

Doubts from deficit hawks
The White House stressed the plan would not add to the record U.S. deficit, a key issue for voters.

"One thing (Obama) is willing to put on the table is closing some of the tax loopholes for big oil and gas companies that currently get subsidies from taxpayers that they certainly don't need. He thinks that is a perfectly good 'pay-for' to get this up and running," the administration official said.

The American Petroleum Institute, which represents major U.S. oil and gas companies, said additional taxes would drive energy investment, including jobs, overseas. "Now is the time to create American jobs, not eliminate them," API spokeswoman Cathy Landry said.

Obama told the Milwaukee rally he would work with Congress to make sure the plan was fully paid for.

He could face an uphill battle in getting Congress to approve the plan, especially if Republicans make big gains in November.

Senate Republican leader Mitch McConnell called it a "last-minute cobbled-together stimulus bill" and the Republican leader of the House, John Boehner, was equally dismissive.

"We don't need more government 'stimulus' spending -- we need to end Washington Democrats' out-of-control spending spree, stop their tax hikes, and create jobs by eliminating the job-killing uncertainty that is hampering our small businesses," Boehner said.

Details of plan
Under the infrastructure plan, Obama is proposing to:
Rebuild 150,000 miles of roads;
Construct and maintain 4,000 miles of rail;
Rehabilitate or reconstruct 150 miles of runway and modernize the air traffic control system and;
Set up an infrastructure bank to leverage private, state and local capital to invest in projects.

Transportation construction spending would likely help companies like equipment maker Caterpillar Inc, privately held engineering firm Parsons Corp, and conglomerate General Electric Co.

The administration official said a "substantial number of jobs" would be created by the infrastructure projects. Transportation experts say 35,OOO jobs are created for every $1 billion in transportation construction investment.

Story: What Obama's options on boosting hiring are
The administration said the proposal unveiled on Monday would be part of a long-term transportation reauthorization that traditionally includes highway and rail funding. The $50 billion would represent a significant portion of the spending in the first year of any new transportation funding measure, an administration official said.

Congress has yet to comprehensively address new transportation legislation. The previous measure expired in 2009. One plan floated in the House would spend about $500 billion over six years.

'Like a dog'
Obama used his appearance in Milwaukee to set the tone for the fall campaign. Monday's Labor Day holiday marks the informal start of the election campaign season.

He argued that Democratic policies had stopped the bleeding and produced some economic growth, while Republicans had opposed him every step of the way.

"If I say the sky is blue, they say no," he said.

Obama said his efforts to rebuild the economy had also stirred opposition from "some powerful interests who had been dominating the agenda in Washington for a very long time."

"They talk about me like a dog," he said to laughter and applause.
Obama's visit to Cleveland promises to be more strategic. It is the city where Boehner, who would be House speaker if Republicans win the House, recently urged Obama to fire his economic team.
Other items that Obama could talk about this week are a payroll tax holiday, extending tax cuts for the middle class and increasing money for clean energy.

Well, I hope this is the end of buddy-buddy with the Republicans.

[Destructionator XV]

How, exactly, do business tax cuts spur job creation?

Maybe it is just because I'm a small business, but any money I spend on infrastructure or employees isn't taxed anyway. The employee payroll has payroll taxes, but that's it - and no one ever cuts the payroll taxes.

Cutting business taxes would have only one affect: shareholders take home a little bit more. Maybe they think that will make more people invest in the market (with what money?!? lol but srsly too) which will make the businesses expand (why?) and in doing so will hire more people (why? what's in it for them?).

But as you can see, I'm skeptical of every step in that process.

[frigidmagi]

The tax cuts have nothing to do with the investment bit. The 50 billion is going directly to infrastructure.

[Destructionator XV]

Yeah, the infrastructure investment part looks good. I just don't see why tax cuts are included...

[frigidmagi]

The cuts remove taxes on buying new equipment or setting up new locations. I assume it's meant to encourage US industries to modernize and expand by making it cheaper to buy new machines for the factories and build new factories and so on.

[The Minx]

My first reaction was "well, it's about time".

Then I thought about it for a while, and my reaction became "I'll believe it when I see it".

Think about it: Obama made lofty promises when he was on the campaign trail, only to let people down (despite having very comfortable majorities in both the House and the Senate). As a result his base became disillusioned. Now they're on the campaign trail again, and all of a sudden he starts talking about a string of public works projects and restoring the infrastructure?

I'm sorry, it may be due to the timing, but it just doesn't convince me.

[SirNitram]

Comfortable majorities? Which never appear on the damn roll calls to proceed to voting on stuff? Yea, there's that frame we have.

[The Minx]

Bush managed to run the county very decisively (into the ground) with far smaller majorities. Obama didn't try to rally his congressmen, instead choosing to pandering to the centrists.

I mean, how much of a majority do the Democrats need to govern, anyway?

[SirNitram]

Bush managed to run the county very decisively (into the ground) with far smaller majorities. Obama didn't try to rally his congressmen, instead choosing to pandering to the centrists.

I mean, how much of a majority do the Democrats need to govern, anyway?

In a sane time? 51 Democrats(Not GOPers who run with blue because it's a way to snag voters).

In this era of stupid, psychotic partisanship? Good Fucking Question. I suppose we could clone Alan Grayson and use the clones for the entire Dem party, then it's just the psychotic opposition to -any- bill in the Senate to overcome.

[frigidmagi]

*rises hand*

Can I be a Senator?

[SirNitram]

*rises hand*

Can I be a Senator?

Will you promise not to bring any of your.. Tools of the trade from the last time you worked for the USA to the Senate?

[frigidmagi]

Oh Come on it's me!

...
...


One or two? Just for the midterm sesason? Not even a CS or a flashbang? Come on you know you wanna see the Senate flashbanged!

[Destructionator XV]

I'd totally run if I were old enough.

But can you be banned from the senate if you go all "evidence, fucktard, present it or get out" in those exact words?

man, consider the media riot.

[Charon]

We should form our own party Destructionator. The Hate Party. Our slogan will be "You're a fucking idiot get out of my face."

[Destructionator XV]

hehe, I like the cut of your jib.

[The Cleric]

I'm all for infrastructure spending.

But I'd also like to pay less than 46% of my paycheck in taxes :/.

[SirNitram]

I'm all for infrastructure spending.

But I'd also like to pay less than 46% of my paycheck in taxes :/.

I'm pretty sure even if you were a self-employed multi-billionaire under the biggest changes to the tax code Obama is proposing, you wouldn't have that much income taken. May I ask what that figure is about?

[The Cleric]

I'm all for infrastructure spending.

But I'd also like to pay less than 46% of my paycheck in taxes :/.

I'm pretty sure even if you were a self-employed multi-billionaire under the biggest changes to the tax code Obama is proposing, you wouldn't have that much income taken. May I ask what that figure is about?

I'm currently at the mid 40's on my commission checks. No deductibles, I claim myself at the end of the year and get a small check back. Saving to buy a house right now.

[SirNitram]

I don't even pretend to imagine the tax mayhem that is comission. I don't beleive any of these proposed will touch yours at all.

[The Cleric]

Probably not; I'd like it to go down though. Treating commission as a bonus when it's the meat of my paycheck makes me unhappy.