Obama Announces New Economic Stimulus Plan

BEIJING, Sept. 9, 2010 (Xinhuanet) --

US President Barack Obama has announced new initiatives in a bid to speed up his country's economic recovery. The measures include a permanent extension of research and development tax credits for businesses, and infrastructure investments. Obama also says he wants a tax cut for middle class families.

On a campaign trip to Cleaveland, Ohio before the November 2nd midterm elections, Obama admitted his economic policies have not worked as quickly as he hoped. But, he argues his Democratic party and proposals are still better placed to boost the U.S. economy.

In an effort to inject new stimulus in the economy, Obama says he wants permanent tax cuts for the middle class, saying they are more likely to spend on basic necessities, which would strengthen the economy as a whole.

Obama said, "We should not hold middle class tax cuts hostage any longer. We are ready, this week, to give tax cuts to every American making $250,000 or less. "

For people making more than 250,000 US dollars a year, Obama says he will not extend Bush-era tax cuts, claiming they are not affordable any more.

Obama said, "For any income over this amount, the tax rates would go back to what they were under President Clinton. This isn't to punish folks who are better off -- God bless them -- it is because we can't afford the $700 billion price tag."

Obama says his administration is proposing a more generous, permanent extension of tax credits to research and innovation firms. His plan would cost 100 billion dollars.

Obama said, "We see a future where we invest in American innovation and American ingenuity; where we export more goods so we create more jobs here at home; where we make it easier to start a business or patent an invention; where we build a homegrown, clean energy industry - because I don't want to see new solar panels or electric cars or advanced batteries manufactured in Europe or Asia. I want to see them made right here in America, by American workers."

U.S. economic growth slowed to an annual rate of 1.6 percent in the second quarter of this year, the slowest quarterly gain since the U.S. economic activities began to pick up in the second half of last year.

To add to new momentum, Obama has also announced a 50 billion-dollar plan to renew and expand the nation's roads, railways and runways.

(Source: CNTV.cn)

Obama announces new plan to support economy, job creation

WASHINGTON, Sept. 8, 2010 (Xinhua) --

U.S. President Barack Obama announced a set of initiatives on Wednesday in a bid to speed up the economic recovery and help business spur hiring.

Obama outlined an array of program including permanent extension of research and development tax credits for businesses and infrastructure investments, when giving a speech in Cleveland, Ohio.

Obama on Monday announced a billion-dollar plan to renew and expand the nation's roads, railways and runways in an effort to jump-start the sluggish economy and to help create job with November's elections for control of Congress approaching and pressure from recession-weary voters mounting.

"Under the tax plan passed by the last administration, taxes are scheduled to go up substantially next year. I believe we ought to make the tax cuts for the middle class permanent," Obama said, adding that the middle-class families are more likely to spend on basic necessities, that would strengthen the economy as a whole.

"We are ready, this week, to give tax cuts to every American making 250,000 U.S. dollars or less. For any whose annual income is over this amount, the tax rates would go back to what they were under President Clinton," he added.

He admitted that reducing the deficit won't be easy in the United States and making up for the 8 million jobs caused by the recession "won't happen overnight."

U.S. unemployment rate edged up to 9.6 percent in August, reflecting business reluctance to hire amid uncertain economic prospects, reported by the U.S. Labor Department.

He pointed out that incomes of middle-class families kept falling, while their living expenses were on the rise.

"I don't believe we can have a strong and growing economy without a strong and growing middle-class," he added.

Obama held that the U.S. private sector had created jobs for the last eight months in a row, and there were roughly 3 million Americans who worked today because of the stimulus plan the administration put in place.

The United States passed a 787-billion-dollar stimulus last year to bolster the economic recovery, but some criticized that it had not create enough jobs as expected.

The Obama administration recently is under increasing pressure to speed up the economic growth and reduce the stubbornly high unemployment rate.

"The truth is, progress has been painfully slow. Millions of jobs were lost before our policies even had a chance to take effect, which is a hole so deep that even though we've added jobs again, millions of American remain unemployed," Obama said.

He added that instead of the tax loopholes that encouraged investment in overseas jobs, the administration was proposing a more generous, permanent extension of tax credit that went to firms for all their research and innovation they would do in the United States.

"I am proposing that all the U.S. businesses should be allowed to write off all the investment they do in 2011. This will help small businesses upgrade their plants and equipment," Obama added.

U.S. economic expansion lost momentum to an annual rate of 1.6 percent in the second quarter of this year, the slowest quarterly gain since the U.S. economic activities began to pick up in the second half of last year.

Obama announces new infrastructure plan to kickstart economy

WASHINGTON, Sept. 6, 2010 (Xinhua) --

U.S. President Barack Obama on Monday announced a new plan to renew and expand the nation's roads, railways and runways, in a bid to jump-start the sluggish economy and to help create jobs.

Obama announced the billion-dollar infrastructure spending program at an event in Milwaukee, Wisconsin, marking the Labor Day holiday in the United States, with November's elections for control of Congress approaching and pressure from recession-weary voters mounting.

The proposal calls for investments over six years, including rebuilding and modernizing 150,000 miles (241,350 kilometers) of roads, 4,000 miles (6,430 kilometers) of railways and 150 miles ( 241 kilometers) of runways.

"It sets up an Infrastructure Bank to leverage federal dollars and focus on the smartest investment. All of this will not only create jobs now, but will make our economy run better over the long haul," Obama said.

This proposal is among an array of targeted initiatives that Obama will outline on Wednesday in an effort to buoy the U.S. economic recovery and long-term growth. The plan builds upon the infrastructure investments that the Obama administration has already made through in the Recovery Act.

"This is a plan that will be fully paid for and will not add to the deficit over time," said Obama.

The U.S. unemployment rate rose to 9.6 percent in August, reflecting business reluctance to hire amid uncertain economic prospects. Private-sector payroll edged up by 67,000, well below the amount generated in July, the U.S. Labor Department reported on Friday.

The president admitted that new jobs "have not been coming fast enough" in the United States.

"These years would be some of the most difficult in our history. The problems facing working families are nothing new, but they are more serious than ever. And that makes our cause more urgent than ever," he added.