Jobs plan paid for as Obama says, but with tax hikes in future

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The White House, though, said the plan could spur job growth now while putting off the pain until after 2013, when the economy could be in better shape.

“In terms of timing, these provisions don’t take effect till January 2013,” Mr. Lew said. “Between the fact that they’re not provisions that substantively should have that impact and they won’t even be on the books till January 2013, it’s very consistent in terms of paying for an immediate jobs and growth package.”

Liberal activists cheered the details, saying the bill hits the right targets.

“If President Obama focuses fully on taxing the rich and big corporations, that will be great news for America. The middle class has sacrificed enough, and it’s time for the rich and big corporations to finally pay their fair share,” said Adam Green, co-founder of the Progressive Change Campaign Committee.

Republicans said they will wait to see how the Congressional Budget Office evaluates the bill, but that some of the proposed tax increases are unlikely to fare any better than they did when debated in the past.

House Majority Leader Eric Cantor, Virginia Republican, said exchanging temporary tax breaks for permanent tax increases in future years is a bad deal for the economy.

“You look at what the president is proposing now with temporary relief for businesses on the tax side, as well as working people and the payroll tax, you look at the elimination of the existing tax rates at the end of next year according to the president’s plan, and you are creating a huge cliff and a tax increase that will go into effect,” he said.

Mr. Lew said Mr. Obama will lay out a broader deficit-reduction plan next week that the president hopes will be a blueprint for the supercommittee working in Congress to find $1.5 trillion in deficit reductions over the next decade.

It’s not entirely clear how the committee will square Mr. Obama’s job stimulus plan with its broader goal of deficit reduction.

The White House said lawmakers could pass the jobs bill now and substitute their own spending cuts or tax increases if they come up with better ideas.

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