During his most recent speech outlining the government’s plans for the economy, President Obama has announced that he will offer congressional Republicans a proposal that would cut corporate tax rates in exchange for new jobs.
CBS reports that this ‘grand bargain’ that Obama proposed in Chattanooga, Tennessee seeks to serve the White House’s goal of creating new jobs for the middle class while also appeasing Congress’s wishes of reforming the business tax code.
As part of his Chattanooga trip, Obama will visit an Amazon (AMZN) warehouse that is planning on expanding its personnel. The online retailer is planning on creating 7,000 staff jobs around the country in warehouses such as the one in Chattanooga.
Obama has pointed at Amazon’s upcoming plans to create thousands of jobs in 13 states as an example of the direction he’s taking with his new proposal. He said that it’s essential to invest in companies like Amazon which stimulate economic growth among the middle class by creating more jobs and paying their employees high wages.
The President has failed to make similar bargains with Republicans in the past, but he hopes that cutting corporate taxes will be enough of an incentive for Congress to pass his proposal.
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