Bloomberg News

Obama Urges Congress to Reward Companies That Keep Jobs in U.S.

February 27, 2012

Feb. 18 (Bloomberg) -- President Barack Obama urged Congress to enact tax proposals that reward technology companies and other businesses that help create jobs in the U.S. rather than overseas.

Boeing Co., whose Everett, Washington, jet factory Obama visited yesterday, has “put thousands of folks to work all over the country,” Obama said in his weekly radio and Internet address. “We want to see more of this. We need to make it as easy as we can for our companies to create more jobs in America. And that starts with our tax code.”

Obama said U.S. businesses created 3.7 million new jobs over the past 23 months, adding, “Companies like Boeing are realizing that even when we can’t make things cheaper than China, we can make things better. That’s how we’re going to compete globally.”

“No company should get a tax break for outsourcing jobs,” Obama said. He urged helping “manufacturers who set up shop here at home,” particularly technology companies. “And Congress should send me that kind of tax reform right away.”

The address also is airing a day after Obama’s advisers said in an annual White House report to Congress that they expect the U.S. economy will gain strength this year and add 2 million jobs.

A “plausible range” for the average unemployment rate this year would be between 8 percent and 8.6 percent, the report said, citing private forecasters.

Attacking Obama Budget

Representative Cathy McMorris Rodgers of Washington, in the Republican radio and Internet response, criticized the $3.8 trillion budget plan Obama proposed on Feb. 13 and the $831 billion stimulus bill of 2009, which marked its third anniversary yesterday. The budget plan wouldn’t meet Obama’s pledge to cut the deficit by half by the end of his first term.

The forecast shows a fiscal 2012 deficit of $1.33 trillion, or 8.5 percent of the economy, marking the fourth straight year the shortfall will exceed a trillion dollars. That’s up from the administration’s estimate in September of $956 billion.

Rodgers said about $2 trillion, or more than half the proposed savings in the budget plan, come from reductions already in the law, while another almost $1 trillion comes from a “war gimmick” of “money that was never requested and will never be spent on wars in Iraq and Afghanistan.”

“Do the math and you’ll discover that the president’s budget only achieves, at most, about a tenth of the savings it promises,” she said.

Rodgers also noted that the administration forecast the stimulus would keep unemployment below 8 percent. The rate in January was 8.3 percent, the lowest in almost three years.

The report yesterday from White House advisers said that policies, including the 2009 stimulus, allowed the U.S. a better recovery than that typical of countries after a financial crisis.

--With assistance from Kate Andersen Brower and Susanna Ray in Everett, Washington and Roger Runningen, Mike Dorning and Brian Faler in Washington. Editors: Jim Rubin, Joe Sobczyk.

To contact the reporter on this story: Margaret Talev in Washington at mtalev@bloomberg.net

To contact the editor responsible for this story: Steven Komarow at skomarow1@bloomberg.net


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