The much-anticipated jobs plan, the American Jobs Act, was unveiled this evening. The president started his speech by appealing to the American Dream and the greatness of the United States. He said government alone cannot fix the economy but business needs to help. The jobs plan, the president said, has provisions that both Republicans and Democrats can agree on. The overarching theme for President Obama is "Pass this bill."
The president goes on to challenge Congress about allowing other countries to outpace the United States in infrastructure. Obama said, "Building a world-class transportation system is part of what made us an economic superpower. And now we're going to sit back and watch China build newer airports and faster railroads? At a time when millions of unemployed construction workers could build them right here in America?" Republicans, so far, are against infrastructure building. They do not believe faster railroads are necessary. This part of the bill will most likely be seen as more stimulus spending.
Obama said the bill would help small businesses create jobs. He said, "Pass this jobs bill, and starting tomorrow, small businesses will get a tax cut if they hire new workers or raise workers' wages. Pass this jobs bill, and all small business owners will also see their payroll taxes cut in half next year. If you have 50 employees making an average salary, that's an $80,000 tax cut. And all businesses will be able to continue writing off the investments they make in 2012." This part of the plan should appeal to both Republicans and Democrats. Small business will lead the way on new hiring and providing tax breaks will aid them.
The jobs plan, according to the president, will help to repair and update 35,000 schools, which aids the construction industry. The bill will put teachers back to work in every state. He also wants to give tax credits to companies that hire veterans. If a company hires a worker who's been looking for employment for more than six months, they will receive a $4,000 tax credit. If this part of the bill is passed, new hiring should increase. A $4,000 tax credit for each worker can offset new hire spending.
The president's plan includes restructuring the tax code to get rid of loopholes. He also wants to increase taxes on the rich and cites Warren Buffett paying a lower tax rate than his secretary as an example. He said, "Right now, Warren Buffet pays a lower tax rate than his secretary – an outrage he has asked us to fix. We need a tax code where everyone gets a fair shake, and everybody pays their fair share."
Obama closed with, "I ask every American who agrees to lift your voice and tell the people who are gathered here tonight that you want action now. Tell Washington that doing nothing is not an option. Remind us that if we act as one nation, and one people, we have it within our power to meet this challenge.
President Kennedy once said, "Our problems are man-made – therefore they can be solved by man. And man can be as big as he wants."
President Obama said his plan will be paid for by increasing the deficit reduction plan. The current plan calls for $1.5 trillion in cuts and the president's jobs plan is around $450 billion. The plan has good ideas for helping the economy get back on track. One of the big things missing is how to fix the housing crisis. A lot of homes are underwater. A plan needs to come forward for that issue.
(Photo Source: Flickr)
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Comments: 17
Hope it does the job of getting our factioned Congress to pull together and pass the bill.
Congress must pass this (vague) plan immediately ... that's why he waited 3 weeks to present it (incompletely) to congress.
What a waste of time this piece of crap administration is.
What did he offer that is really different from the first spentathon/stimulus? Other than what its called and the total that is? Much of the plan is extensions of what has done little the last 3 years.
There was nothing bold here and little that was new. I don't see where liberals would be happy because the amount requested is much smaller than they think is warranted and there is no real outright job plan.
Conservatives, indies, libertarians etc have little to be cheerful about because of the cost and past success rate of much of the items in the plan itself is almost non existent. The infrastructure work plan rests on the unmentioned problem with construction projects in America; years of permits and studies required PRIOR to any real work. The use of China as an example of such progress from government construction leaves that factor, the poor quality of the work, and the fact that China had so little of any of that kind of work existing until recently out of the equation.
Lastly, the money directed to keeping government workers employed does not touch on the far larger problem of private sector confidence in the Administration and only kicks the can down the road AGAIN about states/localities getting their financial houses in order.
I don't see this plan going anywhere intact, some of it might be parceled out by I'm unsure just what will pass the House and Senate. Basically we got a campaign speech and more needling of those who oppose the President (again)
Two cheers for the President and his America’s Jobs Act. Cheer Number One: In presenting it to a joint session of Congress, he sounded as passionate and determined as he’s ever sounded.
Second cheer: He laid out the problem correctly and effectively. He explained why jobs and growth must be the nation’s first priority now — not the federal deficit. The economy is in crisis. People are hurting. So government must act, and act quickly. It’s irresponsible at a time like this to suggest that government should simply close down.
But a jeer because the jobs plan he presented isn’t nearly large enough or bold enough to make a major dent in unemployment, or to restart the economy.
$450 billion sounds like a lot – and is more than I expected — but some of this merely extends current spending (unemployment benefits) and tax cuts (in Social Security taxes), so it doesn’t add to aggregate demand.
The net new boost to the economy is closer to $300 billion. That doesn’t approach even half the gap between what the economy is now producing and what it could produce at or near full employment.
And much that $300 billion is in the form of temporary tax cuts to individuals and companies. Some of these make sense — enlarging the Social Security tax cut, extending it to employers, and giving small businesses a tax holiday for new hires.
But temporary tax cuts haven’t proven to be particularly effective in stimulating new spending in times of economic stress. People tend to use them to pay off debts or increase savings. Companies use them to reduce costs, but they won’t make additional hires unless they expect additional sales – which won’t occur unless consumers increase their spending.
That leaves some $140 billion for infrastructure – improving outworn school buildings, roads, bridges, ports, and so on. And $35 billion to help cash-starved states avoid more layoffs teachers. Both good and important but still small relative to the overall need.
Why did the President include so many tax cuts, and why didn’t he make his proposal sufficiently large to make a real impact on jobs and growth? Because he crafted it in order to appeal to Republicans. To get it enacted, he needs their votes.
I’m having a dizzying sense of déjà vu. The first $800 billion stimulus (spread over two years) wasn’t nearly large enough given the drop in aggregate demand. And half of it was in the form of tax cuts. The reason it wasn’t bigger and contained so many tax cuts was to get Republican votes. But its apparent ineffectiveness — it saved around 3 million jobs, but that didn’t save it from appearing to fail — made it harder for the White House to do anything more to stimulate the economy, and ward off what’s likely to be a double dip.
That’s been the heart of Obama’s dilemma. Big and bold enough to make a difference, and Republicans are certain to reject it. Small and focused on tax cuts, and maybe Republicans will bite. But even if they sign on, what’s the point of the exercise if it won’t have a measurable effect on jobs and growth?
And why would they sign on this time, anyway?
Republican Senate leader Mitch McConnell scoffs “This isn’t a job plan. It’s a reelection plan.†That’s precisely the problem. McConnell and company have stated publicly that their number-one objective is to unseat Obama and regain the presidency in 2012. They don’t want to give the President anything he could possibly claim as a victory. And they’re not terribly worried if the economy stays awful through Election Day because that’s the best way to fulfill their number-one objective.
The President would have done better with a plan that was big enough to make a real difference. And then, when Republicans rejected it, campaign on it.
So two cheers — for both the President’s style and his words. And one jeer: He failed on substance and strategy.
It's not so much that I blame the guy, I voted for him and supported him in his first bid for the Presidency ... but what I dislike is that he is a complete fabrication, a complete liar, and he is only sticking it out because he thinks no Republican can beat him - so he does not care what kind of leadership America has - as long as it is him.
This man lacks inner conviction, vision, strength, integrity, and passion. He can work up some eyebrow action and amp us his voice for a speech, but he cannot detail his vision for America except in campaign slogans and words we has programmed himself to use.
We will likely have to either ride another boring nothing happening, no improvement 4 more years of Obama, or we will get worse ... a horrible Republican that is the followon to George W. Bush and neither alternative is going to be good for the country or good for the world.
I'd have rather seen the cheers for substance and strategy.
Oh, me too, but not with Obama, we will never substance and strategy, and I think people realize that. The point is they are afraid to dump him, so Obama thinks he has a get home free card and does not have to care or worry about doing anything to stay in his job. That disgusts me. I think we will go through this for deacades, this economic mess will be fine for the rich and the corporations, and most Americans will just slide into poverty and middle class will be a thing of the past.
That is the main reason I no longer have employees. I can make more money with less hassle, so, why bother with hiring anyone?
Just like any politician, ask for m ore money to 'create jobs' that will cost more to create than they will pay, and in the end we, the taxpayer, our kids, our grandkids and their kids will be paying for it in the future.