President Barack Obama will propose a series of tax breaks, to help stimulate the U.S. economy. In an effort to ramp up spending, Obama will push to allow businesses to write off investments in plants and equipment through the end of next year.
Obama will announce his latest proposals in Cleveland, Ohio. According to the administration, the President will push for big corporate tax cuts that will be available to approximately 1.5 billion businesses. The plan is expected to save over $200 billion, over the next two years.
The August employment report showed an increase in the unemployment rate to 9.6%, from the 9.5% in the previous month. The Labor Department also reported that the economy had lost 54,000 jobs, in the latest month.
Over the Labor Day holiday weekend, Obama also proposed a $50 billion investment in the nation's transportation system. The plan consists of rebuilding and maintaining the nation's highways, airport runways, and railways.
Ahead of mid-term elections, the President is facing criticism from Republicans for stimulus spending. The November 2nd elections will determine the direction of Congress. There is much reluctance about an increase in federal spending and expenditures.