Barack Obama has put forward a $450bn (£280bn) package that
is aimed at boosting the economy and creating more jobs.
The US President’s package includes a number of tax cuts and
spending plans to help reduce the country’s unemployment rate, which currently
stands at nine per cent.
Reactions to the proposal have been mixed, with some
Republicans claiming that it is just an attempt to gain popularity ahead of
next year’s election.
Opposition from the Republicans is not widespread, however.
Many have admitted that the plans are worth considering, as long as the
Democrats and Republicans could successfully work together. Republican
congressman John Boehner said that he hoped Obama would give “serious
consideration” to their ideas as well.
The main focus of the proposal is a further cut in the
Federal Insurance Contributions tax, used to fund social security and
healthcare for retirees. The president hopes to cut this tax to 3.1% for
workers, costing $240bn.
$50bn is earmarked for infrastructure projects and plans to
upgrade the America’s airports.
The proposal also suggests $85bn in federal government aid
to local and state governments.
Mr Obama hopes that the bill can be passed as soon as
possible and is looking to submit it to Congress next week.
The House of Representatives is controlled by the
Republicans, who have already blocked many of the president’s legislative
proposals. It remains to be seen whether this package will be approved.