Obama blasts GOP, unveils tax credits
Republicans balk at president’s version
PARMA, Ohio – President Barack Obama laid out a sweeping argument for retaining Democrats and punishing Republicans in the upcoming midterm elections, calling on voters Wednesday to reject economic policies advanced by the GOP that he said favor millionaires at the expense of struggling families.
Obama took the unusual step of describing the financial and medical struggles he, first lady Michelle Obama and their families have faced, personalizing a deeply political debate as he sought to position himself firmly on the side of middle-class families.
Obama proposed $180 billion in new construction and tax credits meant to spur investment and research. But the address, at a community college near Cleveland, also represented an intensifying campaign by Obama to discredit Republicans and craft a roadmap for Democrats confronting a potentially disastrous election cycle likely to cost them scores of congressional seats.
Obama singled out the House Republican leader, Rep. John Boehner of Ohio, an architect of a Republican strategy that Obama said aims to obstruct his agenda and to restore policies from the Bush era, including tax breaks for the wealthiest Americans.
The speech also recalled presidential campaign addresses in which Obama drew forceful partisan distinctions while appealing to traditional values of fairness and opportunity.
Republicans criticized the address, even though many GOP lawmakers have generally supported the economic proposals Obama advanced.
Obama’s proposal for an immediate tax write-off of new equipment purchases for businesses was a centerpiece of Arizona Sen. John McCain’s tax proposals during his 2008 presidential campaign. And Republican lawmakers have routinely supported extending the popular tax credit for business research and development.
Even so, experts questioned whether the inconsistency will win political points for Obama or the Democrats.
“So, Republicans are going to filibuster the R&D credit even though they supported it,” said Dean Baker, co-director of the Center for Economic and Policy Research in Washington. “I just think it’s way below the vast majority of voters.”
The primary aim of Obama’s speech was to offer a convincing rebuttal to a line of attack coming from opponents who charge that his economic stimulus plan and other policies have failed to trigger a recovery.
Obama conceded he deserved some blame, acknowledging the policies haven’t worked quickly enough. Progress, he said, has been “painfully slow.” But returning Congress to Republican hands would be worse, he said.
“Do we return to the same failed policies that ran our economy into a ditch, or do we keep moving forward with policies that are slowly pulling us out?” Obama said. “Do we settle for a slow decline, or do we reach for an America with a growing economy and a thriving middle class?”
Obama used the speech to formally roll out his latest economic proposal. Much of the proposal was disclosed in the days before the address, involving new spending on roads, bridges and runways, and tax credits meant to encourage capital investment and research.
The president would pay for the new measures by closing oil, gas and other tax loopholes costing about $300 billion.