Obama reaches out to middleclass with jobs program

US President Barack Obama will propose a bargain for middle-class jobs that would cut the US corporate tax rate and use billions of dollars in revenues generated by a business tax overhaul to fund projects aimed at creating jobs.

His goal, to be outlined in a speech at an Amazon.com facility in Chattanooga, Tennessee, is to break through congressional gridlock by trying to find a formula that satisfies both Republicans and Democrats.

Efforts to reach a bipartisan grand bargain on deficit reduction have been at an impasse for months. Senior administration officials said Obama is not giving up on a big deficit-cutting package, but given that no agreement appears on the horizon, he is offering a new idea to try to follow through on his 2012 campaign promises to help the middle class.