Obama ‘grand bargain’ for economy rejected by GOP

President Barack Obama offered Republicans a new “grand bargain” Tuesday to break a long-running budget impasse, but GOP leaders say it is no deal at all.

During a jobs speech at an Amazon shipping facility in Chattanooga, Tenn., Obama proposed cuts in corporate tax rates — a Republican priority — in exchange for more money for jobs programs, a priority of the president.

“I’m willing to work with Republicans on reforming our corporate tax code — as long as we use the money from transitioning to a simpler tax system for a significant investment in creating middle-class jobs,” Obama told Amazon employees. “That’s the deal.”

Earlier, the president said: “If folks in Washington really want a ‘grand bargain,’ how about a grand bargain for middle-class jobs?”

Republicans quickly denounced Obama’s idea as a new collection of old ideas, including higher tax revenues to pay for jobs programs of questionable validity.

“The tax hike it includes is going to dampen any boost businesses might otherwise get to help our economy,” said Senate Minority Leader Mitch McConnell, R-Ky. “In fact, it could actually hurt small businesses.”

Previous attempts at “grand bargains” to break the budget stalemate have failed, including efforts by Obama and House Speaker John Boehner, ROhio, to strike a major debt-cutting deal that included both specific budget cuts and higher taxes on the wealthy.

Rep. Paul Ryan, R-Wis., chairman of the House Budget Committee, said Obama’s proposal on corporate tax reductions does nothing for families or small business owners. In a USA Today opinion article, Ryan wrote that Obama “might call his plan a grand bargain. But I call it a raw deal.”

In Chattanooga, Obama criticized Republican efforts to roll back his health care plan, seek deep cuts in education, and otherwise block his economic proposals.