–President Obama: Says U.S. Faces ‘An Urgent Time’ On Economy
–Obama: Must ‘End Political Circus,’ Work For Strong Jobs Plan
–House Speaker Boehner Says Obama’s Plan ‘Merits Consideration’
–Senate Defeats Mostly Symbolic Vote To Stop Debt Ceiling Increase

By John Shaw

WASHINGTON (MNI) – President Obama’s revamped plan to spur economic
growth and boost job growth generated a mostly partisan reaction on
Capitol Hill Thursday evening, with Democrats saying it contained
positive elements while Republicans argued that it represents an
extension of current policies that are failing.

However, House Speaker John Boehner did strike a conciliatory tone,
saying that the president’s plan “merits consideration” by Congress.

“We hope he gives serious consideration to our ideas as well,”
Boehner said in a statement.

“It is my hope we can work together to end the uncertainty facing
families and small businesses,” he added.

House Majority Leader Eric Cantor said the two parties should try
to find common ground on policies that spur economic growth. He said
there is “plenty in here we can agree on.”

Cantor said Congress and the White House can work together on tax
cuts for small businesses.

Cantor said he is eager to see how Obama will propose to pay for
his plan.

“He did not provide any of the payfors tonight,” Cantor said.

House Ways and Means Committee Chairman Dave Camp said Congress can
and should work with the administration to approve the pending U.S.
bilateral trade agreements with Panama, Colombia and South Korea. These
trade agreements would boost growth,” Camp said.

“We should act and act now,” on the trade deals, Camp said.

In his speech before Joint Session of Congress, Obama spelled out a
program that he called the American Jobs Act. He said the nation faces
an “urgent time” and must “end the political circus” that has dominated
Washington.

Obama’s plan would cost nearly $450 billion and calls for tax cuts,
additional spending on infrastructure, and funds for state governments.

One of the centerpieces of his proposal would be to extend and
expand the so-called payroll tax holiday. This tax holiday was approved
last year and reduced an employee’s share of the Social Security payroll
tax to 4.2% from 6.2%. It is set to expire at the end of the year.

Obama also called for lower payroll taxes for small businesses.

“The purpose of the American Jobs Act is simple: to put more people
back to work and more money in the pockets of those who are working,”
Obama said.

“It will create more jobs for construction workers, more jobs for
teachers, more jobs for veterans, and more jobs for the long-term
unemployed. It will provide a tax break for companies who hire new
workers and it will cut payroll taxes in half of every working American
and every small business,” he said.

Democrats said Obama’s plan goes in the right direction.

Senate Budget Committee Chairman Kent Conrad said Obama’s proposal
is an “ambitious plan to boost job growth and jump-start the economy.”

He said the short-term growth package should be coupled with
long-term deficit reduction which is being developed by Congress’s
Select Committee on Deficit Reduction.

Senate Labor and Education Committee Chairman Tom Harkin said the
president is right to focus on economic growth measures.

“We need a robust federal agenda to boost the economy and create
jobs,” Harkin said.

A number of Republicans said the Obama plan is deeply flawed. Sen.
Jeff Session, the ranking Republican on the Senate Budget Committee,
said Obama’s plan represents more of the same failed policies.

“Unfortunately, the President again failed to rise to the moment,”
Sessions said.

After Obama’s speech, the Senate rejected a motion by Republican
leader Mitch McConnell’s to disapprove of Obama accessing the second
$500 billion installment of borrowing authority for the debt ceiling.

The Senate voted 52 to 45 to reject McConnell’s motion to block the
second tranche of the debt limit extension.

Under the provisions of this summer’s debt ceiling law, the $14.3
trillion debt ceiling was increased by $400 billion as soon as Obama
requested it in early August.

A second tranche of $500 billion in borrowing authority will be
made available unless Congress blocks it through a resolution of
disapproval.

If the resolution of disapproval were approved by both the House
and Senate, it would require the White House budget office to cut
spending by $400 billion.

This congressional disapproval procedure was crafted during the
debt limit talks as a device to allow Republicans to continue to vote
against the debt ceiling without actually blocking its increase.

** Market News International Washington Bureau: (202) 371-2121 **

[TOPICS: M$U$$$,MFU$$$,MCU$$$]