‘Obama to propose $300 bn jobs package’

Bloomberg News said the plan would inject more than $300 billion into the economy next year through tax cuts,spending on infrastructure,and aid to state and local governments. Obama would offset those short-term costs by calling on Congress to raise tax revenues in a deficit-cutting proposal he will lay out next week,the news agency reported.

The White House declined to comment on the reports. Obama’s aides have refused to go public with the estimated cost of Obama’s package or provide many specifics in advance,except to say that the proposals will have a “quick and positive” impact on boosting jobs at a time of stubbornly high US unemployment.

“We need to do things that will have a direct impact in the short-term to grow the economy and create jobs,and the president will put forward proposals that will do just that,” White House spokesman Jay Carney said.

Republicans criticised Obama for not including them in discussions on the package before his big speech and indicated any jobs bills could face tough passage through Congress,where they control the House of Representatives.

Confidence in Obama’s management of the economy has been hit by months of bad economic news,and several polls on Tuesday showed fresh declines in his job approval ratings.

Obama hopes to start reversing this trend with his address to a joint session of Congress on Thursday,in which he will try to convince voters that he has a better economic recovery plan than his Republican opponents.

Bloomberg News said nearly half the stimulus in his plan would come from tax cuts,including an extension of a payroll tax cut paid by workers and a decrease in the amount paid by employers.