WASHINGTON (MNI) – The following are excerpts from President
Obama’s speech Thursday unveiling the America Jobs Act, in which he
details how the $447 billion package will be paid for:

The agreement we passed in July will cut government spending by
about $1 trillion over the next ten years. It also charges this Congress
to come up with an additional $1.5 trillion in savings by Christmas.
Tonight, I’m asking you to increase that amount so that it covers the
full cost of the American Jobs Act. And a week from Monday, I’ll be
releasing a more ambitious deficit plan — a plan that will not only
cover the cost of this jobs bill, but stabilize our debt in the long
run.

This approach is basically the one I’ve been advocating for months.
In addition to the trillion dollars of spending cuts I’ve already signed
into law, it’s a balanced plan that would reduce the deficit by making
additional spending cuts; by making modest adjustments to health care
programs like Medicare and Medicaid; and by reforming our tax code in a
way that asks the wealthiest Americans and biggest corporations to pay
their fair share. What’s more, the spending cuts wouldn’t happen so
abruptly that they’d be a drag on our economy, or prevent us from
helping small business and middle-class families get back on their feet
right away.

Now, I realize there are some in my party who don’t think we should
make any changes at all to Medicare and Medicaid, and I understand their
concerns. But here’s the truth. Millions of Americans rely on Medicare
in their retirement. And millions more will do so in the future. They
pay for this benefit during their working years. They earn it. But with
an aging population and rising health care costs, we are spending too
fast to sustain the program. And if we don’t gradually reform the system
while protecting current beneficiaries, it won’t be there when future
retirees need it. We have to reform Medicare to strengthen it.

I’m also well aware that there are many Republicans who don’t
believe we should raise taxes on those who are most fortunate and can
best afford it. But here is what every American knows. While most people
in this country struggle to make ends meet, a few of the most affluent
citizens and corporations enjoy tax breaks and loopholes that nobody
else gets. Right now, Warren Buffet pays a lower tax rate than his
secretary — an outrage he has asked us to fix. We need a tax code where
everyone gets a fair shake, and everybody pays their fair share. And I
believe the vast majority of wealthy Americans and CEOs are willing to
do just that, if it helps the economy grow and gets our fiscal house in
order.

I’ll also offer ideas to reform a corporate tax code that stands as
a monument to special interest influence in Washington. By eliminating
pages of loopholes and deductions, we can lower one of the highest
corporate tax rates in the world. Our tax code shouldn’t give an
advantage to companies that can afford the best-connected lobbyists. It
should give an advantage to companies that invest and create jobs here
in America.

** Market News International Washington Bureau: 202-371-2121 **

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