Obama readying plan to boost jobs and cut deficits

US President Barack Obama will announce a double-barrelled economic package that aims to boost hiring and find budget savings that surpass the USD 1.5 trillion goal of a congressional deficit-cutting committee.

His ideas will be outlined in a major speech immediately after the Sept. 5 Labor Day holiday, White House officials said.

While no final decisions have been made, it is likely the jobs proposals will include tax cuts for businesses that hire new employees, tax cuts for the middle class, and support for sectors of the economy that are falling behind, the officials said.

The measures are also expected to include investments in infrastructure beyond the construction projects the president has been repeatedly calling for as well as some assistance for the long-term unemployed.

The White House also suggested that Obama would push the congressional "super committee" -- set up this month to find more budget savings under the debt ceiling deal -- to go beyond their USD 1.5 trillion target.

He plans to call again for a "balanced approach" to reducing the deficit, with revenue increases alongside spending cuts, the officials said, also suggesting job measures may be included to offset painful cuts.

The super committee is due to unveil a compromise package on Nov. 23 that must be agreed by Congress by Dec. 23.

Obama's job approval ratings have slid over the past month after the debt ceiling talks pushed the United States to the brink of default, prompting a Standard & Poor's ratings downgrade and a stock market slide.

US economic output figures were also revised lower for the start of 2011, showing a highly fragile recovery under Obama's watch despite his big stimulus programs, including an auto industry bailout.

The Democratic president is widely seen to have few tools left to bolster the US economy and tackle unemployment levels which remain stuck above 9%.

Republicans in Congress -- and on the campaign trail -- are resisting any big new spending or stimulus measures from the White House. Jobs and the economy will be pivotal in the 2012 election in which Obama is seeking re-election.

On Wednesday, the president was wrapping up a three-day bus tour through Minnesota, Iowa and Illinois in which he has been repeating well-tread proposals to boost hiring, including free trade legislation, payroll tax cuts and highway repair work.

Obama said on Monday that he would put forward an economic growth plan to address jobs and the deficit when Congress returns from its summer recess. But at the time, he disclosed no details of what the package might contain.