President Barack Obama unveiled a $447 billion jobs package Thursday night, that will depend on new legislation consisting of tax cuts for workers and businesses.  Admittedly, Obama's chances for re-election in 2012 depends on his ability to shrink the 9.1% unemployment rate. In challenging Congress to pass the needed legislation, the President said:  "It will provide a jolt to an economy that has stalled and give companies confidence that if they invest and hire there will be customers for their products and services.  You should pass this jobs plan right away." His proposal includes extending unemployment insurance at a cost of $49 billion, modernizing schools for $30 billion and investing in transportation infrastructure projects for $50 billion.  The bulk of his proposal - some $240 billion in tax relief - would involve cutting payroll taxes for employees in half next year and trimming employer payroll taxes as well.  The $447 billion is more than the $300 billion initially expected. Taking aim at Republicans who have consistently opposed his economic initiatives, Obama said it was time to "stop the political circus and actually do something to help the economy."  John Boehner, the Republican speaker of the House of Representatives, said Thursday that President Barack Obama's jobs proposals "merit consideration" and expressed hope both parties could work together.

"It's my hope that we can work together to end the uncertainty facing families and small businesses and create a better environment for long-term economic growth and private-sector job creation."

Obama, who pushed through an $800 billion economic stimulus package in 2009, said his jobs plan would cut taxes for workers and businesses and put more construction workers and teachers on the job through infrastructure projects.  Companies will get a $4,000 tax credit if they hire someone who has been looking for a job for more than 6 months and an extra tax credit for hiring military veterans.  The President added that, under this plan, the typical working family would get a tax credit of about $1,500. The plan also proposes spending $35 billion so that states and local governments can prevent layoffs of teachers and emergency services personnel.  "And to help responsible homeowners, we're going to work with Federal housing agencies to help more people refinance their mortgages at interest rates that are now near 4% - a step that can put more than $2,000 a year in a family's pocket, and give a lift to an economy still burdened by the drop in housing prices," Obama said. Deficit-Reduction Plan. Obama said he would propose a deficit-reduction plan on 9/19 that will cover the cost of his jobs bill and include "modest adjustments" to Medicare and Medicaid and more taxes for the rich and corporations.  He added:  "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." Heads I Win, Tails Your Lose. Obama wants Congress to pass his "American Jobs Act" by the end of this year - a difficult task because politicians are focused on next year's presidential and congressional elections.  However, if Obama can push through his plan, it might provide an economic boost quickly enough for him to reap political benefits.  If it stalls in a divided Congress, his strategy will be to blame Republicans for obstructing the economic recovery. For further details, go to:   [Reuters, 9/8/11]