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During a trip to Chattanooga, Tenn., Obama will propose a cut in corporate tax rates — a priority for the Republicans — in exchange for new jobs programs, a prime White House objective.
"The president will call on Washington to work on a grand bargain focused on middle-class jobs by pairing reform of the business tax code with a significant investment in middle class jobs," said a statement from Obama senior adviser Dan Pfeiffer.
Previous attempts at grand bargains have fallen through. That includes efforts by Obama and House Speaker John Boehner, R-Ohio, to strike a major debt cutting deal that included both budget cuts and higher taxes on the wealthy.
Some Republicans questioned the value of the latest proposed bargain, saying that Obama has backed corporate tax reform in the past, while Republicans also want to help families and businesses. Republicans also want to pair corporate and personal tax changes so that most people can take advantage of lower rates.
"This proposal allows President Obama to support President Obama's position on taxes and President Obama's position on spending, while leaving small businesses and American families behind," said Boehner spokesman Michael Steel.
During his Tuesday trip to Chattanooga, Obama will tour an Amazon shipping facility and speak on what the White House calls "a better bargain for the middle class."
The speech "will focus on proposals to jump-start private sector job growth and strengthen the manufacturing sector," the White House said.
Obama is expected to make one specific offer to congressional Republicans: A cut in corporate tax rates in exchange for new investments in jobs programs.
It's the latest in a string of economic speeches that Obama began last week.
The president returns to the White House late Tuesday afternoon for a meeting with Defense Secretary Chuck Hagel.