<br>Obama comes to Cleveland to roll out tax credits for small businesses

PARMA, Ohio — President Barack Obama Wednesday set out to present this election as stark choice for voters, arguing that he, not Republicans, has the right plan to jump-start the American economy.

Speaking in a state deemed critical to his re-election chances in 2012, he repeatedly said that returning to the Republican policies that preceded his election "won't get us there."

"They're making the same calculation they made just before my inauguration — if I fail, they win," Mr. Obama told an invitation-only crowd of about 800 at Cuyahoga Community College's West Campus near Cleveland.

"Well, they might think this will get them to where they need to go in November, but it won't get our country to go where it needs to go in the long run," he said. "So that's the choice, Ohio. Do we return to the same failed policies that ran our economy into a ditch, or do we keep moving forward with policies that are slowly pulling us out? Do we settle for a slow decline, or do we reach for an America with a growing economy and a thriving middle-class?"

Continuing his rollout of what could essentially be considered a second round of stimulus efforts, the President proposed $300 million in long-term expanded tax credits designed to convince a skittish corporate America that now is the time to invest in plant expansions, new machinery, and research and development.

"This will help small businesses upgrade their plants and equipment, and will encourage large corporations to get off the sidelines and start putting their profits to work in places like Cleveland and Toledo and Dayton," Mr. Obama said.

The question is whether any of these proposals, including another round of road, rail, and other infrastructure construction announced earlier this week in Milwaukee, will have any effect on the outcome of midterm elections on Nov. 2.

At least some of the proposals face an uphill battle in a stimulus- and deficit-weary Congress already facing voter backlash. Polls show Republicans are likely to make major gains in Congress and potentially take back control of government in battleground Ohio.

Sounding more like a campaign rally than a policy speech, Mr. Obama specifically targeted Ohio's own U.S. Rep. John Boehner (R., West Chester), who would presumably become the next Speaker of the House if Republicans take back control of the chamber.

"When these same Republicans, including Mr. Boehner, were in charge, the number of earmarks and pet projects went up, not down," Mr. Obama said. "These same Republicans turned a record surplus into a record deficit. When I walked into office, there wrapped in a nice bow was a $1.3 trillion deficit. Sitting right there on the doorstep."

Urging patience, he admitted that the recovery has been slower than he hoped and that some of his policies have not been popular.

"…(O)ur job is not easy," he said. "But you didn't elect me to do what's easy. You didn't elect me to just read the polls and figure out how to keep myself in office. You didn't elect me to avoid big problems.

"You elected me to do what was right, and as long as I'm President, that's exactly what I intend to do," he said to the strongest standing ovation of his speech.

He urged renewal of Bush-era tax cuts for those earning less than $250,000 a year while criticizing Republicans' plans to also extend the tax cuts for those making more than that. The tax cuts are set to expire at the end of the year.

Democratic Gov. Ted Strickland and U.S. Senate candidate Lee Fisher attended the 45-minute speech. Both of them are trailing their Republican opponents in polls.

The governor's speech on the campaign trail has been similar to that of the President, that the two Democratic administrations have laid the groundwork that will ultimately pay off with jobs and economic growth.

The tax incentive package unveiled Wednesday includes $200 million to extend the ability of businesses to write off costs of plant and machinery investments through 2011. Mr. Obama is also seeking an expansion of an existing tax credit for research and development that would be worth $100 billion over 10 years.

The proposals received a mixed reception among Republicans.

"President Obama seems to finally be realizing that his actions over the last 18 months aren't working," said GOP U.S. Senate candidate Rob Portman. "While the announcement today may be politically motivated, at least he is starting to talk about the right issues — proposals to spur private sector investment and job growth… Unfortunately, President Obama is also talking about tax increases as part of the package that will negate the economic benefits."

This marked the sixth time that Mr. Obama has traveled to battleground Ohio so far this year and the 10th since he took office 19 months ago. The state's unemployment rate of 10.3 percent is above the national average.

Second-term Parma Mayor Dean DePiero, a Democratic former state representative, said the city, where the largest employer is the General Motors stamping plant, was the perfect spot for a message highlighting business investment and infrastructure development.

"This is the right spot politically," he said. "It's a middle-class, blue-collar town. It's a swing area… If we lose the governorship in Ohio and the majority of Congress people from Ohio, he has to start thinking about his re-election."

Contact Jim Provance at:

jprovance@theblade.com

or 614-221-0496.