President in Chattanooga proposes grand bargain to create jobs

President Obama, speaking Tuesday an Amazon.com warehouse packed with people applauding his remarks, proposed a five-point "grand bargain" to create jobs. Departing from script, he also remarked "I'm going to keep on throwing out ideas to see if something takes."

Five-point plan

1. Promote "Made in America."
2. Rebuild infrastructure to "put construction workers back to work."
3. Keep creating good jobs in energy such as solar and wind.
4. Export more by negotiating the best deal in trade agreements for our workers.
5. Do more to help the five million long-term unemployed through challenging companies to help and by raising minimum wage.

Tax changes to pay for plan

1. Lower the tax rate for business from 36 percent to 28 percent and 25 percent for manufacturers.
2. Provide tax incentives for companies to repatriate foreign earnings.
3. Simplify the tax code for small businesses but then provide investment incentives to encourage expansion and hiring.

How this works, as explained on CNBC by Gene Sperling, Assistant to the President on Economic Policy, is a reduction in tax rates usually creates a one-time surge in revenue. The President's five-point plan would is seen as a one-time expenditure opportunity equaling the one-time surplus in revenues.

The President, introduced by Lydia Flanders, an order picker at the Amazon plant, lauded the company for its robust business. He was impressed that the company processes up to 300 orders per second during the holiday season likening them to the North Pole in the South. His comment that "we have a bunch of good lookin' elves here," drew thunderous applause.