Tuesday, September 07, 2010


* Obama under pressure to create jobs

* To lay out plan on Wednesday

* Control of Congress in play at election

By Thomas Ferraro and Steve Holland

WASHINGTON, Sept 7 (Reuters) - Republicans in the U.S. Congress showed little willingness to help President Barack Obama approve $350 billion worth of measures to boost the economy with midterm elections less than two months away.

Obama's plans for billions of dollars in tax breaks for businesses are policies that Republicans typically embrace, but the party has little motivation to give the Democratic White House a win with polls showing them gaining seats in Congress -- possibly winning both houses.

Obama will announce his plans to stimulate the sagging U.S. economy -- including the tax breaks and new spending on transportation projects -- in a speech on Wednesday in Cleveland.

Senate Republican leader Mitch McConnell said on Tuesday there was little appetite for new economic proposals from Obama, arguing that the $814 billion stimulus that the president already pushed through Congress in early 2009 has not had the desired effect.

"After the administration pledged that a trillion dollars in borrowed stimulus money would create 4 million jobs and keep the unemployment rate under 8 percent, their latest plan for another stimulus should be met with justifiable skepticism," he said.

Obama needs support from the Republicans, who are far outnumbered by Democrats in Congress but are nonetheless able to block legislation. [More]

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