(AP) - President Barack Obama strongly defended his opposition to extending Bush-era tax breaks for the wealthiest Americans on Wednesday and delivered a searing attack on Republicans and their House leader for advocating "the same philosophy that led to this mess in the first place."

Obama said the struggling U.S. economy can't afford to spend $700 billion to keep lower tax rates in place for the nation's highest earners despite a call by House Minority Leader John Boehner and other GOP leaders to do just that.

Speaking in the same city where Boehner, an Ohio Republican, recently ridiculed Obama's economic stewardship, Obama said Boehner's policies amount to no more than "cut more taxes for millionaires and cut more rules for corporations."

Obama's comments came as the administration rolled out new proposals designed to re-ignite a sputtering recovery, including new tax breaks for businesses and $50 billion for U.S. roads, rails and airports.

"Let me be clear to Mr. Boehner and everyone else. We should not hold middle class tax cuts hostage any longer," the president said. The administration "is ready this week to give tax cuts to every American making $250,000 or less," he said.

Actually, Obama and other Democratic leaders want to extend the tax cuts except for individuals making over $200,000 a year ? or families earning over $250,000. The sweeping series of Bush tax cuts expires at the end of this year unless Congress renews them.

Obama went after Boehner - who would probably become House speaker if Republicans win control of the House in November's midterm elections - directly by name.

In Boehner's remarks on Aug. 24, Obama said, the Republican leader offered "no new ideas. There was just the same philosophy we already tried for the last decade, the same philosophy that led to this mess in the first place."

Ahead of Obama's speech, Boehner offered his own proposals on Wednesday, saying in a morning broadcast interview that Congress should freeze all tax rates for two years and should cut federal spending to the levels of 2008, before the deep recession took hold.

"People are asking, 'Where are the jobs?"' Boehner said, calling the White House "out of touch" with the American public.

Obama gave one of his strongest pitches yet on allowing the Bush tax cuts to expire at the end of this year for wealthy Americans but allowing them to remain in place for everybody else.

Republicans, and even some Democrats, have suggested that it was no time to raise taxes on anybody, given the fragile state of the economy.