American Jobs Act
Mark Zandi, Chief Economist with Moody's Analytics, said the $447 billion American Jobs Act would create 2 million jobs and increase economic growth by 2%.
Republicans say they are against it, because they say the 2009 stimulus didn't create any jobs. But according to the CBO, the stimulus added up to 2.1 million jobs in the fourth quarter of 2009 alone, and saved or created a total of up to 3.6 million jobs.
The American Jobs Act will be paid for by adding a 5% tax on incomes over $1 million a year, starting in 2013. The tax rate for this top one-thousandth fell from 53.7% in 1980 to 33.7% by 2004.
Pro-Hiring Tax Cuts for Businesses ($65 Billion)
- Cuts payroll tax in half (from 6.2% to 3.1%) for up to the first $5 million in payroll. This means 98% of small businesses will have all their payroll tax cut in half! The CBO said it creates jobs. In 2010, fifty House Republicans, including Bachmann co-sponsored same legislation.
- Businesses have no payroll tax at all for employee raises or new employees hired (up to $50 million in new wages.) Plus additional tax cuts for hiring the long-term unemployed, with special incentives if they are returning or wounded veterans. CBO said it creates jobs. Moody's chief economist, Mark Zandi agrees.
Pro-Growth Measures for Businesses
- $5 billion to extend 100% business expensing through 2012. The NFIB called it a "big victory" for small business. The Chamber of Commerce said "bringing back bonus depreciation will encourage companies of all sizes to invest in newer, more efficient, and more environmentally-friendly equipment, which will help large and small businesses alike.”
- Increases the limit on SBA-guaranteed surety bonds from $2 to $5 million.
- Pays small contractors faster.
- Delays Bush's rule requiring government to withhold 3% of contractor payments for the IRS.
- Creates a website to provide easy access for businesses to all the government programs and services they need to compete globally.
- Reduces regulation on capital formation.
- Reforms our outdated patent system.
Rebuilding and Modernizing America:
- $35 billion to rehire teachers and first responders.
- $30 billion to repair and modernize schools in need.
- $27 billion to repair and modernize roads and bridges.
- $9 billion to repair railways.
- $2 billion to modernize airports.
- $10 billion for innovative ways of financing and investing in infrastructure, such as high-speed rail.
- $15 billion to invest in strategies that create jobs rehabilitating abandoned properties.
- $10 billion for National Infrastructure Bank (NIB) based on the bi-partisan model proposed by Senators John Kerry, Kay Bailey Hutchison, Lindsey Graham and others. The Chamber of Commerce and AFL-CIO are both for it.
- Expand nation-wide wireless internet. This is supported by House Homeland Security Chairman Peter King and 112 economists. Initial $10 billion cost will reduce the deficit by $18 billion because of spectrum auction.
- The U.S. received a "D" from the ASCE for the condition of our infrastructure.
- AFL-CIO President and U.S. Chamber of Commerce President said: “With the U.S. Chamber of Commerce and the AFL-CIO standing together to support job creation, we hope that Democrats and Republicans in Congress will also join together to build America’s infrastructure.
Creating Jobs
- Hundreds of thousands of jobs will be created by investing in infrastructure.
- These projects give jobs to local workers.
- Employment and job training opportunities for minorities, women, and socially and economically disadvantaged individuals in transportation related activities.
Veterans:
- New $5,600 Returning Heroes Tax Credit and an extension of the $9,600 Wounded Warriors Tax Credit for businesses hiring veterans whom have been unemployed six months or longer.
- Form a DOD task force to make all servicemen career-ready.
- Help returning veterans search for jobs through the Department of Labor.
Preventing Layoffs:
- Prevents the layoff of about 280,000 teachers, guidance counselors, classroom assistants, etc. According to the NY Times, "America's public schools may see the most extensive layoffs of their teaching staffs in decades."
- Prevents the layoff of emergency response jobs, such as police and firemen.
- Reforming unemployment insurance to accommodate "work sharing." The Center for Economic and Policy Research and the American Enterprise Institute are for it.
Helping the Unemployed ($62 Billion):
- $49 billion to reform and extend unemployment insurance.
- Funding for states to start "Bridge to Work" programs. The unemployed can continue to receive benefits while temporarily working at unpaid, on-the-job training. Boehner and Cantor are for the "Bridge to Work" program.
- Wage insurance for older worker who take a loss of pay to return to work.
- Requires claimants to check-in to a local center for career guidance, job search help, skills assessment, workshops, and referrals to occupational training.
- Eligibility assessments to prevent fraud and provide job counseling.
- Funding for states to implement programs to encourage the unemployed to become self-employed.
- $5 billion to states to help the disadvantaged with summer youth jobs and adult training programs.
- Funding to support promising strategies designed to lead to employment in the short-term.
- Makes it against the law for employers to reject unemployed applicants.
- $8 billion for up to $4,000 bonus credit for hiring somebody unemployed for more than six months.
More Money in the Pockets of Every Worker ($175 Billion):
- 15.1% of Americans are living below the poverty line ($22,314 for a family of four.)
- Extends and enlarges the employee payroll tax cut for 2012. Cutting it in half from 6.2% to 3.1% gives employees an extra $1,500 - $2,500 next year for a $50,000 - $80,000 income household.
- The CBO and independent economic forecasters are for this.
- An employee payroll tax cut was passed in 2010, with 138 House and 37 Senate Republicans voting for it.
- This will not hurt Social Security - the $175 billion is allocated to make up for the lost funds.
- 50 House Republicans co-sponsored a bill that cut the payroll tax in half (Economic Freedom Act), including Bachmann and Select Committee on Deficit Reduction member Jeb Hensarling.
- Eric Cantor has suggested that he could support it.
Because Republicans blocked President Obama's Americans Jobs Act which would have created 2 million jobs and increases economic growth by 2%; he broke it up so he could offer just the part that would prevent the layoff of firefighters, police and teachers. Harry Reid said it would be paid for by "asking asking millionaires to pay an extra half a penny on the dollar."And once again they blocked it, proving their top political priority . . . is to deny President Obama a second term just like Mitch McConnell said - NOT jobs or the economy.
You can download a copy of the American Jobs Act here.