President Barack Obama is extending a new economic offer to Republicans that he hopes will break the impasse on fiscal negotiations.

President Barack Obama (Win McNamee/Getty Images)

Obama plans to use a trip to an distribution center in Chattanooga, Tenn., today to propose what he's calling a "grand bargain for middle-class jobs." The White House says Obama is proposing to cut corporate tax rates in exchange for job investments.

Obama has long called for a cut in corporate tax rates, but previously insisted such business tax reform be coupled with individual tax reform.

He's dropping that demand and says instead that he's open to the corporate tax cut that businesses crave. But he wants it to be coupled with spending on some sort of job creation program like manufacturing, infrastructure or community colleges.

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