Republicans hit at Obama measures as vote-seeking

Barack Obama is facing an uphill battle to push through the full package of measures in his £281 billion jobs programme in the US Congress.

The proposals met with a frosty reception from Republicans, who see them as a re-election platform for the President.

US unemployment stands at 14 million, with a jobless rate of 9.1 per cent.

The newest and boldest element of Mr Obama’s plan would slash the payroll tax for the social security pension programme both for tens of millions of workers, and for employers too.

It also includes £66bn in public works projects and the renewal of £31bn in unemployment benefits for about six million Americans at risk of losing jobless insurance.

Mr Obama did not venture an estimate as to how many jobs his plan would create.

Some elements of his package are expected to win support from Republicans, who control the House of Representatives, but the President’s infrastructure spending plans are less likely to be endorsed.

Top Republican in the Senate, Mitch McConnell, described Mr Obama’s expected ideas as retreads, saying: “This isn’t a jobs plan. It’s a re-election plan.”

But Michigan’s Republican governor, Rick Snyder, backed the plans to cut the payroll taxes for small businesses in half to encourage job growth while proposing to end loopholes for corporations.

“These are changes that will help create an environment where jobs can grow, and they should be considered by Congress,” Governor Snyder stated.

Republican presidential candidate Michele Bachmann said that Mr Obama’s approach amounts to more “failed gimmicks”.

The Minnesota congresswoman said the plan Mr Obama outlined to Congress would further hurt the struggling US economy.

A Tea Party movement favourite, Mrs Bachmann said that even if Congress passes Mr Obama’s jobs plan, it will fail.

She said Mr Obama is “politically paralysed” and “philosophically incapable of doing what needs to be done”.

Republicans are reluctant to be seen as “obstructionist” with an election looming next year, but they will be hesitant to hand Mr Obama a major legislative victory that could boost his re-election prospects.

The President promised repeatedly that his plan would be paid for, but never said how, pledging to release those details soon.

“This plan is the right thing to do right now,” Mr Obama said after a divided body rose in warm unison to greet him yesterday.

“You should pass it. And I intend to take that message to every corner of this country.”

Republicans control the House of Representatives and can use procedural tactics to block bills in the Senate.

Mr Obama has faced criticism from his own supporters, who say he has been too quick to yield to the demands of Republicans, especially those associated with the anti-tax, small-government tea party movement.

In his speech, Mr Obama defended the role of government and, without mentioning it by name, took on the Tea Party.

“This larger notion that the only thing we can do to restore prosperity is just dismantle government, refund everyone’s money, let everyone write their own rules, and tell everyone they’re on their own – that’s not who we are,” he said.

“That’s not the story of America.”

Mr Obama remains personally popular and a formidable campaigner. But his approval ratings keep tumbling and no incumbent President in recent history has won re-election with the unemployment rate anywhere near the current 9.1 per cent level.

One poll found 80 per cent of Americans thought the country was headed in the wrong direction – similar to the pessimism when Mr Obama took office.