Obama to Urge $100 Billion Tax Credit for Businesses

Looking for ways to jump-start the economy, President Barack Obama will call for a $100 billion research and development tax credit for businesses this week, The Washington Post reports. Obama is expected to announce the initiative in a speech Wednesday in Cleveland.

The proposal would increase and permanently extend research and development tax credits for businesses, rewarding companies that develop new technologies domestically and preserve American jobs. It would be paid for by closing corporate tax breaks for multinational corporations and oil and gas companies.

Laura Tyson, a member of Obama's Economic Recovery Advisory Board, admitted Sunday on "Face the Nation" that such a move would not have an immediate impact on jobs, "but I think it's very important in terms of job creation over the longer term."

Faced with a sluggish economy and dim Democratic prospects for the looming midterm elections, the administration is trying to increase hiring and undercut Republican allegations that Obama has hurt the business climate.