Obama: More Infrastructure Spending    09/06 09:50

   President Barack Obama is asking Congress to approve at least $50 billion in 
long-term investments in the nation's roads, railways and runways in a 
pre-election effort to show he's trying to stimulate the sputtering economy.

   WASHINGTON (AP) -- President Barack Obama is asking Congress to approve at 
least $50 billion in long-term investments in the nation's roads, railways and 
runways in a pre-election effort to show he's trying to stimulate the 
sputtering economy.

   The infrastructure investments are part of a package of targeted proposals 
the White House announced on Monday. With November's elections for control of 
Congress approaching, Obama planned to discuss the proposal later Monday at a 
Labor Day event in Milwaukee.

   The proposals would require congressional approval, which is highly 
uncertain at a time when many legislators and voters are worried about adding 
to federal deficits that are already sky-high.

   Even if lawmakers could pass a bill in the short window between their return 
to Capitol Hill in mid-September and the elections, it's unlikely the spending 
would give the economy a significant boost by the time voters head to the polls.

   While the proposal calls for investments over six years, the White House 
said spending would be front-loaded with an initial $50 billion to help create 
jobs in the near future.

   The goals of the infrastructure plan include: rebuilding 150,000 miles of 
roads; constructing and maintaining 4,000 miles of railways, enough to go 
coast-to-coast; and rehabilitating or reconstructing 150 miles of airport 
runways, while also installing a new air navigation system designed to reduce 
travel times and delays.

   Obama will also call for the creation of a permanent infrastructure bank 
that would focus on funding national and regional infrastructure projects.

   Administration officials wouldn't say what the total cost of the 
infrastructure investments would be, but did say the initial $50 billion 
represents a significant percentage. Officials said the White House would 
consider closing a number of special tax breaks for oil and gas companies to 
pay for the proposal.

   Obama made infrastructure investments a central part of the $814 billion 
stimulus Congress passed last year, but with that spending winding down, the 
economy's growth has slowed. Officials said this infrastructure package differs 
from the stimulus because it's aimed at long-term growth, while still focusing 
on creating jobs in the short-term.

   In a Labor Day interview on CBS' "Early Show," Labor Secretary Hilda Solis 
said the plan Obama was to unveil Monday would "put construction workers, 
welders, electricians back to work ... folks that have been unemployed for a 
long time."

   With the unemployment rate ticking up to 9.6 percent, and polls showing the 
midterm elections could be dismal for Democrats, the president has promised to 
unveil a series of new measures on the economy.

   In addition to Monday's announcement in Milwaukee, Obama will travel to 
Cleveland Wednesday to pitch a $100 billion proposal to increase and make 
permanent research and development tax credits for businesses, a White House 
official said.

   While the idea is popular in Congress, coming up with offsetting tax 
increases or spending cuts has been a stumbling block. Similar to his proposal 
to pay for the infrastructure investments, Obama will ask lawmakers to close 
tax breaks for oil and gas companies and multinational corporations to pay for 
the plan.

   Other stimulus measures the administration is considering include extending 
a law passed in March that exempts companies that hire unemployed workers from 
paying Social Security taxes on those workers through December. Sen. Chuck 
Schumer, D-N.Y., has proposed extending the exemption an additional six months.

   Obama is also continuing to prod the Senate to pass the small business bill 
that calls for about $12 billion in tax breaks and a $30 billion fund to help 
unfreeze lending. Republicans have likened the bill to the unpopular bailout of 
the financial industry. And the president wants to make permanent the portion 
of George W. Bush's tax cuts affecting the middle class.

   Wary of the public's concern over rising deficits, the administration 
insists a second stimulus plan, similar to last year's $814 billion bill, is 
not in the works.


(KA)