Infrastructure Likely Part of Obama Jobs Push

By

Naftali Bendavid

Updated Sept. 5, 2011 9:10 p.m. ET

President Barack Obama signaled Monday he'll propose a major infrastructure program and an extension of a payroll tax break in the jobs speech he planned to deliver Thursday before a joint session of Congress.

In an animated Labor Day talk before an enthusiastic crowd of union members in Detroit, Mr. Obama, who has been battered by low poll numbers and a sense that he's been unable to recharge the economy, sought to seize the initiative at the outset of a week in which both parties will focus heavily on job-creation ideas.

"We've got roads and bridges across this country that need to be rebuilt," Mr. Obama said. "We've got private companies with the equipment and manpower to do the building. We've got more than one million unemployed construction workers ready to get dirty right now."

ENLARGE

President Barack Obama at a Labor Day event in Detroit.
European Pressphoto Agency

Mr. Obama also stressed his desire to extend a payroll tax holiday for workers, which has reduced the Social Security tax rate from 6.2% to 4.2% of earnings but expires at year's end. Mr. Obama didn't mention whether he will also push to expand the reduction to cover employers, who also pay 6.2%, an idea backed by some in the administration.

"I think putting money back in the pockets of working families is the best way to get demand rising, because that means businesses hiring and that means the economy growing," Mr. Obama said.

As important as the speech's content was its tone. It was feisty and framed in part as a challenge to Republicans to join his jobs push and, as the president put it, to prove they care as much about the middle class as they say they do.

Mr. Obama delivered the address as his approval ratings had slipped to the lowest of his presidency, with voters frustrated he and members of Congress had been unable to jump-start the economy. Adding to the frustration was a report Friday showing that the U.S. created no new jobs in August and unemployment remained at 9.1%.

Both parties are focusing on jobs this week. Republican presidential hopeful Mitt Romney is laying out his jobs plan Tuesday in Las Vegas. The GOP candidates hold a debate on Wednesday—the first to include Texas Gov.
Rick Perry
,
the newly minted front-runner—and job creation will likely to be a major topic.

More

Mr. Obama is scheduled to deliver his address to a joint session of Congress on Thursday evening, promising to offer a broad plan to add more jobs. The White House has been debating whether to put forth a limited package that both parties can agree on, or to offer a grander vision that is unlikely to pass Congress but could serve as a rallying point for Democrats heading toward the election and to underline the differences between the two parties.

Both parties are aware of polls showing the public deeply disenchanted with the bickering that surrounded the recent debate on raising the federal debt limit. Both have sought in recent days to show they're willing to reach across party lines, as Mr. Obama did Monday.

"I still believe both parties can work together to solve our problems," said the president. "Given the urgency of this moment, given the hardship families are facing, we've got to get together."

He balanced that with strong words for Republicans, addressing a concern among many rank-and-file Democrats that the president has not done enough to challenge Republicans.

"We're going to see if we've got some straight-shooters in Congress," Mr. Obama said. "You say you're the party of tax cuts. Prove you'll fight as hard for tax cuts for working families as for oil companies and most affluent Americans. Show us what you've got."

In recent days, House Majority Leader Eric Cantor (R., Va.) has said Republicans could support at least parts of Mr. Obama's infrastructure plans, particularly a proposal to give states more control over such projects.

He has also cited Mr. Obama's support of a Georgia program, popular with Republicans, that allows companies to audition workers for eight weeks while the workers receive unemployment checks.

The next few months could be critical for both parties. Congress will struggle to strike another budget deal, Republicans will try to sort out their presidential field, and Mr. Obama will work to regain his footing—and all will wait to see if the economy shows more signs of life.

After the Thursday speech, Mr. Obama plans to travel the country promoting his job-creation ideas. It starts Friday with a trip to Richmond, Va.

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.