Obama offers new 'grand bargain' of corporate tax cuts and jobs WASHINGTON - President Obama on Tuesday offered what he billed as a new "grand bargain" proposal that would combine a cut in corporate tax rates sought by many Republicans with a jobs-creating program that would spend more money on roads and bridges around the country. "If we're going to give businesses a better deal, we're also going to give workers a better deal too," Obama said, speaking at a warehouse in Chattanooga, Tenn. I'm willing to work with Republicans on reforming our corporate tax code, as long as we use the money from transitioning to a simpler tax system for a significant investment in creating middle-class jobs. That's the deal. Republican leaders scoffed at the idea immediately, saying it offered them no concession at all. The GOP position has been that money generated by tax reform should be rolled back into the system to further lower tax rates. They have opposed any reform plan that would add to spending. White House officials, however, have suggested they think the new idea might appeal to at least some moderate Republicans in the Senate, although they have less hope in the Republican-controlled House. In unveiling the new strategy at an Amazon distribution center, Obama tacitly acknowledged what lawmakers had assumed for months - that the old "grand bargain" talks were dead. Those negotiations, aimed at reducing the long-term deficit by combining lower spending on Medicare and Social Security with tax increases, dragged on for months but failed to produce a plan both sides could support. The White House has always said that the deal offered in those talks remains on the table, but hasn't pushed the idea for many months. The motivation to pursue those talks has diminished because the deficit has come down rapidly - too quickly, many economists say - as a result of an improving economy, higher taxes and spending cuts, including the across-the-board sequester that took effect this year. Now, the president is making clear his intent to try moving in a different direction, starting with the newly refurbished grand bargain. Aides say Tuesday's announcement is the first of several new ideas Obama will roll out as he prepares for budget negotiations this fall. The White House and Congress face two major deadlines in coming months: The government's authorization to spend money on many programs will expire at the end of September unless Congress passes the annual appropriations bills before then, which seems unlikely. Later in the fall, the government will once again need to raise its debt ceiling. Under Obama's plan, the top corporate rate would be cut to 28% from 35% for most businesses. Manufacturers would get a preferred rate of 25%. As part of the deal, the government could levy a one-time fee on earnings that multinational corporations have kept overseas. That would generate billions of dollars in revenue, but only for a limited period. Obama's proposal could take some of that money and use it to fund infrastructure projects, White House economic advisor Gene Sperling said. Obama did not say Tuesday how much he wants. But in his State of the Union address this year, the president named a $50-billion figure, with $40 billion aimed at the highways, bridges, transit systems and airports in the most urgent need of repair. Even with the exact dimensions of the new plan unknown, analysts questioned whether the president expected lawmakers to take it at face value. "He's delivering this major economic pivot 72 hours before Congress leaves for a five-week recess," said Chris Krueger, managing director and senior policy analyst at Guggenheim Securities' Washington Research Group. It almost seems like they're just throwing a bunch of stuff at the wall just to say they're trying. Obama may be "laying down markers" for the coming fight over the debt ceiling, Krueger said. "Any time the White House talks about infrastructure spending, Republicans kind of roll their eyes," he said. All they hear is 'stimulus.' In addition to disliking the new spending, House Republicans also oppose a tax overhaul that changes the code for corporations, but not for individuals. The GOP has also demanded that corporate tax reform be "revenue neutral," not raising money for job creation or any other goal, said Brendan Buck, press secretary for House Speaker John A. Boehner (R-Ohio). "After offering us two things he knows we oppose, the president is asking for additional stimulus spending which, as you know, we also oppose," Buck said Tuesday. White House aides said Obama's proposal was revenue neutral because the money for the construction projects would come from the one-time fee or other new revenue that would not be permanent. In his speech, Obama said he went to Chattanooga because he wanted to talk about "good jobs" in a "durable, growing industry." Amazon recently announced it would hire 5,000 additional workers at centers around the country - jobs that reportedly pay more than hourly wages at McDonald's but less than a middle-class salary. White House aides defended the choice of Amazon as the location for the speech, saying that many families expect to cobble together part-time jobs in order to live a middle-class lifestyle. Giving his second economic speech in as many weeks, Obama said he was looking for a way to "break free of the same old arguments, where I propose an idea and Republicans just say no because it's my idea." "As Washington heads toward another budget debate," Obama said, "the stakes could not be higher."