Obama Seeks $100 Billion Research Tax Credit

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With midterm elections less than two months away, President Barack Obama plans to ask Congress to increase and permanently extend research tax credits for businesses.

According to one White House official, the $100 billion business tax credit will be the first in string of proposals presented by the administration to revive the ailing economy.

With recent polls showing conservative Republican candidates steadily gaining ground over their opponents, the president hopes his latest plan will benefit Democrats in the upcoming elections.

Obama leaves Monday to campaign in Wisconsin and Ohio, where he plans to talk about the economy in his Labor Day speech in Milwaukee and detail his latest economic policy push during a speech in Cleveland on Wednesday.

Specifically, he will be proposing more immediate spending on infrastructure.

"Before the great recession, we know that we were vastly under-spending on the nation's infrastructure," White House economic adisor Laura Tyson told CBS' "Face the Nation."

"You can sort of, therefore, start with the notion that infrastructure spending is terrific in two ways," she continued. "It creates demand right away when you go out and get the project started and get the workers started; it also creates the ability to grow and be productive in the future," she said.

The research tax proposal would extend and expand tax credits for businesses that research new technologies domestically, thereby providing employment opportunities.

The latest Labor Department statistics released on Friday show unemployment at 9.6 percent and 54,000 jobs lost last month.

Republican Senator John McCain called the president's tax-cut package "deathbed conversion" and said Obama's "economic polices have failed."

"Look, they're just flailing around. We always like to see deathbed conversations," McCain said, "but the fact is if we'd done this kind of thing nearly a couple of years ago, we'd be in a lot better shape."

Some Democrats like David Plouffe, Obama's 2008 campaign manager, say the administration should be rewarded for having made unpopular, but necessary decisions.

"The President and a lot of people in his party knew they were going take tough political positions to try and move the country forward and stave off another Great Depression, and they did that, and we should be proud of that," Plouffe told NBC's "Meet the Press."

"The Democrats and President Obama - they asked for the job and they got it and they haven't performed," Republican consultant Kevin Madden told ABC News. "And right now what you see is an electorate that is ready to render judgment on that lack of leadership on the economy."

President Obama will wind up the week with a press conference on Friday at the White House.

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Paul  Strand

Paul Strand

CBN News Washington Sr. Correspondent

As senior correspondent in CBN's Washington, D.C., bureau, Paul Strand has covered a variety of political and social issues, with an emphasis on defense, justice, and Congress.  Follow Paul on Twitter @PaulStrandCBN and "like" him at Facebook.com/PaulStrandCBN.