Obama offers ‘grand bargain’ on corporate tax rate, infrastructure

by Steve Holland  |  published on July 31, 2013

U.S. President Obama high-fives an employee of Daimler Detroit Diesel plant following remarks and a tour in Redford

(Reuters) – President Barack Obama proposed a “grand bargain for middle-class jobs” on Tuesday that would cut the U.S. corporate tax rate and use billions of dollars in revenues generated by abusiness tax overhaul to fund projects aimed at creating jobs.

The goal, as outlined in his speech to an enthusiastic audience at anAmazon.com Inc facility in southeastern Tennessee, was to break through partisan gridlock in Congress with a formula that satisfies Republicans and Democrats alike.

But there was no sign that congressional Republicans – who have fought nearly every facet of Obama’s domestic agenda – would look favorably upon the president’s proposal.

The president’s plan combined a proposed corporate tax rate cut – desired by Republicans – with new spending on infrastructure projects like roads and bridges as well as education investment – desired by his fellow Democrats.