That’s what we Democrats believe in — a vibrant free market, but one that works for everybody. That's our vision for a stronger economy and a growing middle class. And that’s the difference between what we and Republicans in Congress are offering the American people right now.
Let me give you a few specific examples of our different approaches. This week, I proposed some additional steps to grow the economy and help businesses spur hiring. One of the keys to job creation is to encourage companies to invest more in the US. But for years, our tax code has actually given billions of dollars in tax breaks that encourage companies to create jobs and profits in other countries.
I want to change that. Instead of tax loopholes that incentivise investment in overseas jobs, I’m proposing a more generous, permanent extension of the tax credit that goes to companies for all the research and innovation they do right here in the United States of America.
And, I’m proposing that all American businesses should be allowed to write off all the investment they do in 2011. This will help small businesses upgrade their plants and equipment, and will encourage large corporations to get off the sidelines and start putting their profits to work in places like Cleveland and Toledo and Dayton. Now, to most of you, I'll bet this just seems like common sense. But for years, Republicans have fought to keep these corporate loopholes open.
Let me give you another example. We want to put more Americans back to work rebuilding America — our roads, our railways, our runways. When the housing sector collapsed and the recession hit, one in every four jobs lost were in the construction industry. That’s partly why our economic plan has invested in badly needed infrastructure projects over the last 19 months.
The Republicans in Congress said no to these projects. Fought them tooth and nail. Though I should say it didn’t stop a lot of them from showing up at the ribbon-cuttings — trying to take credit. That’s always a sight to see.
Now, there are still thousands of miles of railroads and railways and runways left to repair and improve. There is no reason why Europe or China should have the fastest trains or the most modern airports — we want to put people to work building them right here in America. So, this week, I’ve proposed a six-year infrastructure plan that would start putting Americans to work right away. But Republicans have so far said no to infrastructure. That’s bad for America — and that, too, is what this election is all about.
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I’ll give you one final example of the differences between us and the Republicans, and that’s on the issue of tax cuts. Under the tax plan passed by the last administration, taxes are scheduled to go up substantially next year — for everybody.
With all the other budgetary pressures we have – with all the Republicans’ talk about wanting to shrink the deficit – they would have us borrow $700 billion over the next 10 years to give a tax cut of about $100,000 each to folks who are already millionaires. And, keep in mind, wealthy Americans are just about the only folks who saw their incomes rise when Republicans were in charge. And these are the folks who are less likely to spend the money – which is why economists don’t think tax breaks for the wealthy would do much to boost the economy.
So, let me be clear to the Republicans and everybody else: We should not hold middle-class tax cuts hostage any longer. We are ready, this week, if they want, to give tax cuts to every American making $250,000 or less. That's 98-97 per cent of Americans. Now, for any income over this amount, the tax rates would just go back to what they were under President Clinton.
Excerpts from the speech of US President Barack Obama in Parma, Ohio, on September 8