White House: No second stimulus being considered

WASHINGTON Thu Sep 2, 2010 7:23pm EDT

President Barack Obama delivers remarks at Xavier University in New Orleans, Louisiana, August 29, 2010. REUTERS/Jim Young

President Barack Obama delivers remarks at Xavier University in New Orleans, Louisiana, August 29, 2010.

Credit: Reuters/Jim Young

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WASHINGTON (Reuters) - The White House stressed on Thursday that no second economic stimulus package is being considered as part of new measures under review by President Barack Obama's team.

Obama said on Monday he and his advisers are discussing further tax cuts for businesses to help create jobs, as well as an extension of tax cuts for the middle class, rebuilding U.S. infrastructure and increasing investments in clean energy and research and development.

The Washington Post reported on Thursday that the business tax cuts could be potentially worth hundreds of billions of dollars.

"There have been a lot of reports and rumors on different options being considered -- many of which are incorrect," said White House spokeswoman Amy Brundage.

"The options under consideration build on measures the president has previously proposed, and we are not considering a second stimulus package. The president and his team are discussing several options, as they have been for months, and no final decisions have been made," she said.

Obama is expected to outline in the coming days and weeks several targeted initiatives to help spur the recovery and hopes Congress will approve them before stopping work to focus on November 2 elections.

Obama is to travel to Milwaukee to speak to a labor rally on Monday, the Labor Day holiday, and is to visit Cleveland on Wednesday. He is to hold a White House news conference on September 10.

Obama is under strong election-year pressure to increase U.S. job growth after an $814 billion stimulus plan he and his Democrats pushed through Congress in February 2009 saved or created millions of jobs but has not reduced the U.S. jobless rate of 9.5 percent.

Experts say a Labor Department report due on Friday could show an uptick in the U.S. jobless rate in August to 9.6 percent from 9.5 percent in July. Obama is expected to comment on the figures on Friday.

The Washington Post reported that among the options under review by the Obama team are a temporary payroll tax holiday and a permanent extension of the research and development tax credit.

(Reporting by Steve Holland and Alister Bull; Editing by Cynthia Osterman)

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