Obama announces plan to boost economy

2009-12-09 08:24 BJT

After US unemployment figures hit 10 percent in October, creating jobs for Americans has become one of the most critical challenges for the government. US President Barack Obama has set out fresh plans to rejuvenate the US economy, vowing to create new jobs and lay the foundation for robust growth.

The new job plan includes three key areas: helping small businesses add staff, improving the country's transportation infrastructure and making homes energy-efficient.

Battling public dismay over US unemployment, Obama called for an extension of unemployment and health insurance benefits for the more than 15 million out-of-work Americans. He also stressed that boosting jobs was the best way to tackle the deficit.

On helping small businesses, the president promised tax cuts to support additional business investments next year.

US president Barack Obama said, "We also have to address the continuing struggle of small businesses to get the loans they need to start up and grow. To that end, we're proposing to waive fees and increase the guarantees for SBA-backed loans. And I am asking my Treasury Secretary to continue mobilizing the remaining TARP funds to facilitate lending to small businesses."

The US government will extend enhanced expensing provisions for small businesses and the Recovery Act, -a bonus depreciation tax incentive. This provision will put more than 20 billion dollars into the hands of businesses in 2010, while enabling the US Treasury to recoup much of the funding as businesses regain their strength.

In order to give small businesses easier access to lending, the president called for the elimination of fees and increasing guarantees for small businesses that borrow through major SBA programs in 2010.

Obama hopes to create jobs through an energy efficiency strategy and clean energy investments. The new plan will provide incentives for consumers who invest in energy efficient appliances in their homes.

Editor: Zhang Ning | Source: CCTV.com