By Brai Odion-Esene
WASHINGTON (MNI) – President Barack Obama Thursday challenged
Congress to meet its responsibility to the American people, unveiling a
$447 billion jobs package that he urged lawmakers to pass right away.
“The question is whether, in the face of an ongoing national
crisis, we can stop the political circus and actually do something to
help the economy,” Obama told a joint session of Congress.
Calling it the American Jobs Act, Obama reiterated a point the
White House has emphasized repeatedly leading up to the speech: that
there is nothing controversial about this legislation.
“Everything in here is the kind of proposal that’s been supported
by both Democrats and Republicans — including many who sit here
tonight. And everything in this bill will be paid for. Everything,” the
president said.
Obama noted that the agreement reached in July with Congress will
cut government spending by about $1 trillion over the next 10 years, and
charges Congress to come up with an additional $1.5 trillion in savings
by Christmas.
“Tonight, I’m asking you to increase that amount so that it covers
the full cost of the American Jobs Act,” he said. “And a week from
Monday, I’ll be releasing a more ambitious deficit plan — a plan that
will not only cover the cost of this jobs bill, but stabilize our debt
in the long run.”
According to information provided by the White House, the details
and costs of the overall package are as follows:
* $70 billion for tax cuts to help small businesses hire and grow.
Of that amount, $65 billion to cut employer payroll taxes in half and a
bonus payroll cut for new jobs and wages. The remaining $5 billion would
go towards extending 100% expensing into 2012.
* $140 billion to put unemployed Americans back to work “rebuilding
and modernizing America.” Of that, $35 billion would be invested in
teacher rehiring and first responders, $30 billion in modernizing
schools, and $50 billion to be immediately invested in U.S. surface
transportation.
Obama also proposed created an infrastructure bank with $10 billion
in capital, as well as asking for $15 billion for the rehabilitation and
repurposing of foreclosed homes and businesses.
Separate from this, Obama said the administration will set up an
independent fund to attract private dollars and issue loans with a
streamlined criteria for approving projects, based on only two criteria:
“how badly a construction project is needed and how much good it would
do for the economy.”
He also put forward a veterans hiring initiative that would provide
tax credits from $5,600 to $9,600 to encourage the hiring of unemployed
veterans.
The package also includes $62 billion to help the long-term
unemployed find work, with $49 billion earmarked for innovative
work-based reforms and to extend unemployment insurance into next year.
There is also a jobs tax credit for long-term unemployed that would
cost $8 billion, and a $5 billion “Pathways back to work” fund, which
builds on and improves innovative state programs where those displaced
take temporary, voluntary work or pursue on-the-job training.
Finally, the plan includes $175 billion to expand the payroll tax
cut passed last year to cut workers payroll taxes in half in 2012. It
would provide a $1,500 tax cut to the typical American family, without
negatively impacting the Social Security Trust Fund.
Obama also said the administration will work with federal housing
agencies to allow more homeowners to refinance their mortgages at
current low interest rates of near 4%, “which can put more than $2,000 a
year in a family’s pocket.”
Obama said he does not expect this plan to solve all of the
country’s problem, and it will not be the last plan of action the
administration proposes.
“Those of us here tonight cannot solve all of our nation’s woes.
Ultimately, our recovery will be driven not by Washington, but by our
businesses and our workers. But we can help,” Obama said.
** Market News International Washington Bureau: 202-371-2121 **
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