US President Barack Obama on Thursday proposed a US$447bn package to spur jobs in a struggling economy through a mix of tax cuts and government spending.

The Obama jobs package includes a mix of US$253bn in tax cuts and US$194bn in new spending.

He also urged the Congress to quickly endorse his new stimulus in order to breathe some life into an anemic US economy.

Obama called the stalled economy a national crisis and argued that Congress should pass the jobs plan right away.

“Ultimately, our recovery will be driven not by Washington, but by our businesses and our workers,” Obama said in the address. “But we can help.”

However, it remains to be seen if Obama's latest attempt at shoring up growth passes the litmus test on the floor of the Congress in the coming days.

There were things in Obama’s plan that Republicans could work with, but said not all the measures in the plan would be passed, House Republican leader Eric Cantor was quoted as saying.

The jobs plan, called The American Jobs Act, will cut payroll taxes in half for every working American and every small business, Obama said. There would also be a tax break for companies that hire new workers.

Obama also proposed new spending on schools and roads besides proposing new ways to hire teachers, veterans and workers who have been out of work for extended periods.

Under the plan, the Social Security payroll tax would be cut to 3.1% on employees. It is usually set at 6.2%. This year, the tax has been 4.2%.

IIFL