Estimates from several economists showed that Obama's jobs package, if passed, could lift U.S. economic growth by 1 to 3 percentage points in 2012, add some 1 million jobs and lower the unemployment rate by about half a percentage point.
Obama said his plan would "provide a jolt to an economy that has stalled and give companies confidence that if they invest and hire there will be customers."
He proposed extending unemployment insurance at a cost of $49 billion, modernizing schools for $30 billion and investing in transportation infrastructure projects for $50 billion.
But the bulk was made up of $240 billion in tax relief by cutting payroll taxes for employees in half, to 3.1 percent, next year and trimming employer payroll taxes as well.
A surprise element for economists was that Obama called not just for an extension of the employee payroll tax holiday but for a more generous tax break.
Obama also said he was seeking to broaden access to mortgage refinancing to help the ailing housing market, drawing rare applause from Republicans during the speech.-Reuters
Obama said his plan would "provide a jolt to an economy that has stalled and give companies confidence that if they invest and hire there will be customers."
He proposed extending unemployment insurance at a cost of $49 billion, modernizing schools for $30 billion and investing in transportation infrastructure projects for $50 billion.
But the bulk was made up of $240 billion in tax relief by cutting payroll taxes for employees in half, to 3.1 percent, next year and trimming employer payroll taxes as well.
A surprise element for economists was that Obama called not just for an extension of the employee payroll tax holiday but for a more generous tax break.
Obama also said he was seeking to broaden access to mortgage refinancing to help the ailing housing market, drawing rare applause from Republicans during the speech.-Reuters
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