August 1, 2013 11:15 AM, EDT
Obama Calls for Higher Infrastructure Spending
Economic Plan Would Trim Corporate Taxes, Cut Loopholes

President Obama said Tuesday that he wants to use billions that would be saved by his proposal to close overseas business-tax loopholes to fund infrastructure projects.

Speaking at an distribution center in Chattanooga, Tenn., he said the online retailing giant, as an example, needs good roads and bridges to get its products to its customers. Amazon said Sunday that it plans to hire 5,000 warehouse workers.

With the money saved by closing tax loopholes, “we can build a broader network of manufacturing hubs that businesses can support,” Obama added.

The president also touted his “Fix It First” plan, aimed at repairing roads and bridges in need of immediate reconstruction, which he had mentioned in February as part of a $50 billion “infrastructure bank” program.

The White House plan would simplify the tax code for businesses by lowering taxes for manufacturers and for companies that create U.S. jobs.

Obama proposed reducing the top corporate rate for most companies to 28% from 35%, and his plan would give U.S. manufacturers an even lower rate of 25%, “while encouraging research and development and the production of clean energy,” according to the White House website.