Deconstructing The Absurdity

The Future of The American Jobs Act

In 2012 Presidential Election, Barack Obama, Democratic Party, Republican Party, U.S Congress on September 19, 2011 at 8:23 pm

Warren Buffet has gone on record saying that his secretary pays higher taxes than he does. President Obama just released his jobs plan which he has been promoting an awful lot these days. He also has said that he is ready to work out the tax code with both Republicans and Democrats. The American jobs act was released to the public sometime ago. Let’s weigh in on the key points of the plan:

  • Cuts payroll taxes: The President’s plan will cut in half the taxes paid by businesses on their first $5 million in payroll, targeting the benefit to the 98 percent of firms that have payroll below this threshold. Perhaps, Perhaps! The only point that both Republicans and Democrats might agree when this bill comes to a vote. Republicans LOVE tax cuts and this is a perfect opportunity building up to 2012 making the point that the GOP isn’t opposed to tax cuts for the middle class. Democrats have been pushing for payroll tax cuts for a long time now. It has been extended temporarily for a while but President Obama. Experts say that this might create 8-10 millions jobs in this painful economy.
  • Tax cuts for veterans:  A “Returning Heroes” hiring tax credit for veterans; This provides tax credits from $5,600 to $9,600 to encourage the hiring of unemployed veterans. Veteran unemployment is at 12% and this tax breaks would go a long way in helping veterans seeking a life after the military.
  • Tax credit for employers, employing: A $4,000 tax credit to employers for hiring long-term unemployed workers. Prohibiting employers from discriminating against unemployed workers when hiring. Expanding job opportunities for low-income youth and adults through a fund for successful approaches for subsidized employment, innovative training programs and summer/year-round jobs for youth.
  • Modernizing public schools: The President is proposing a $25 billion investment in school infrastructure that will modernize at least 35,000 public schools – investments that will create jobs, while improving classrooms and upgrading our schools to meet 21st century needs.
  • Investment in infrastructure: The President is proposing to invest $15 billion in a national effort to put construction workers on the job rehabilitating and refurbishing hundreds of thousands of vacant and foreclosed homes and businesses. Building on proven approaches to stabilizing neighborhoods with high concentrations of foreclosures, Project Rebuild will bring in expertise and capital from the private sector, focus on commercial and residential property improvements, and expand innovative property solutions like land banks. This approach will not only create construction jobs but will help reduce blight and crime and stabilize housing prices in areas hardest hit by the housing crisis. Infrastructure is collapsing everywhere. Hurricane Irene blew out a whole chunk of a road in Vermont. There are 90 bridges approximately in every city that need repairs and most policy maker on either side of the isle accept that infrastructure is in deep trouble. Some of them however are still saying nothing is wrong with infrastructure in their district and infrastructure is not something we need to invest in.
  • Eliminating Bush Tax cuts: And finally the President’s plan is to eliminate the Bush tax cuts, get rid of subsidies to big oil and remove the corporate jet tax cuts. This itself would bring in over $3 trillion over the next decade.

Most of the proposals within this $447 billion bill, although proposed under Democratic purview, were either originally proposed directly by Republican members of Congress or received legislative support from a large number of Republican elected officials. About 54 percent of the expenditures proposed within the act ($240 billion), would support tax reductions, both for individual citizens and businesses. Barack Obama started promoting this jobs plan with his new slogan, “Pass this Bill.” Here’s where the problem begins. It’s the run up to 2012. Sometimes it’s hard for an average American to determine whether this is purely a political act for reelection or is this an honest effort from this administration to ease the pain this country is going through. Another stimulus package is right now the perfect excuse for Republicans law makers to reject this plan.

Speaker Boehner and the Presidential candidates are already trying their best to give the thumbs down to the President’s jobs plan. Presidential candidate Mitt Romney said, “President Obama’s plan to raise taxes will have a crushing impact on economic growth. Higher taxes mean fewer jobs – it’s that simple.” It’s so simple that Mitt Romney is A. Wrong and B. is not that simple. He doesn’t provide any specific and facts which would prove his point. His ‘simple’ point does not make his case any stronger. In fact it doesn’t give it any backbone. It’s not just Mitt Romney, Rick Perry, Michele Bachmann and Speaker John Boehner are in that group who are trying to slam Obama’s deficit reduction plan by calling it class warfare, not useful, bias and the other usual rhetoric that they generally use to describe any of Obama’s policies.

The concern with President Obama was that he was not being vociferous enough with his point of view. He was alienating his own base and caving way too much to the Republicans on very crucial issues. So is this his come back? Is he trying to pull a Tea Party move to rope in votes by changing his position temporarily? For ex: Michele Bachmann has been ducking the pray away the gay question every time she is asked about it. But Obama’s come back today with his speech to back up his plan was not in any way a reflection of a person trying to ‘pray away’ anything. He is tackling tough questions, he is coming out strong against Boehner and the Tea Party and he is calling out Republicans whenever they say something worth calling out. That is the Barack Obama liberals want to see and he is feeding it to them. His number were at all time low and this was the only way to get back on track. Another questions that keeps lingering is that, would this bill get stuck in politics of Congress? President Obama made it abundantly clear that if the bill came back with no revenue (tax increases) and only spending cuts then he will veto it and Boehner and friends have been harping on the fact that nothing can pass the house right now specially if it has tax increases on the rich. At this point most economists say that the American Jobs Act will be very good for the economy and that just might be the trigger for some Republicans to fillabuster this bill in the house. 2012 is so close and the GOP is looking to hurt Obama at every opportunity they can get. Can that kind of measure really help the American economy at any point? The Republican wanted a bi-partisan approach and they have it. Paul Ryan calls it class warfare and President Obama says that it’s not class warfare. Do the math and you’ll find out.

  1. I am not rattling good with English but I find this really leisurely to read .

  2. Perfect just what I was looking for! .

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