[ForexNews]

President Obama proposed a new plan to spur job creation, focusing on three main goals. First, he advocated eliminating the capital gains taxes on small business investment and extending write-offs, so small businesses can expand. In addition, he supports a new tax credit to encourage small businesses to retain jobs and hire new workers. Second, President Obama proposed greater infrastructure investment to "modernize our transportation and communication networks," which would spur hiring. Third, the President would like to consider a new program which provides incentives for people who make their homes more energy efficient, thereby creating jobs. While the President did not specify how much this would cost, he did advocate "mobilizing" the remaining TARP funds, in particular to open up credit to small businesses. However, at the same time, the Administration plans to "wind down" TARP, allowing a faster reduction of the deficit. He said that the Administration does not have to make a choice between paying down our deficits and investing in job creation.