Obama Urges Congress to Pass US$447 Billion American Jobs Act
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
US President Barack Obama called on Congress to pass a US$447 billion “American Jobs Act” that would see tax cuts for workers and businesses, subsidies for state and local governments, and investments into infrastructural projects.
[quote]”I am sending this Congress a plan that you should pass right away. It’s called the American Jobs Act,” said Obama in his speech late Thursday evening.
US President Barack Obama called on Congress to pass a US$447 billion “American Jobs Act” that would see tax cuts for workers and businesses, subsidies for state and local governments, and investments into infrastructural projects.
[quote]”I am sending this Congress a plan that you should pass right away. It’s called the American Jobs Act,” said Obama in his speech late Thursday evening.“There should be nothing controversial about this piece of 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 purpose of the American Jobs Act is simple: to put more people back to work and more money in the pockets of those who are working. It will create more jobs for construction workers, more jobs for teachers, more jobs for veterans, and more jobs for the long-term unemployed.
“It will provide a tax break for companies who hire new workers, and it will cut payroll taxes in half for every working American and every small business.”[/quote]
Obama added that his proposal would see more than US$60 billion spent on extending unemployment insurance benefits through 2012, while ensuring that Americans who have been out of work for more than 6 months would have opportunities to return to work.
[quote]”Ultimately, our recovery will be driven not by Washington, but by our businesses and our workers. But we can help.”[/quote]The President was careful to not label his proposal as a “stimulus plan”, considering the seemingly public aversion to the term – especially in the run up to the 2012 presidential elections. However, the American Jobs Act does propose US$85 billion in aid to state and local governments, including cash for hiring teachers and refurbishing schools, as well as a US$10 billion infrastructure bank and US$50 billion for transportation projects.
Still, the White House hopes that some of the tax cuts proposed will appeal to Republicans in Congress. If things go according to plan, the American Job Act could cut the payroll tax for employers in half for businesses’ first US$5 million of wages. Additionally, businesses would get a full payroll tax holiday for any increase in payroll up to US$50 million. However, Obama’s plan would also mean higher taxes for the super-rich, and cited Warren Buffett as an example for his cause.
[quote]“Right now, Warren Buffet pays a lower tax rate than his secretary – an outrage he has asked us to fix.”[/quote]Related: Warren Buffett: I Want to Pay More Taxes!
In his address, President Obama also spoke directly to members of both parties calling them to end “the political circus and actually do something to help the economy.”
[quote]“Let’s meet the moment,” said Obama. “These are difficult years for our country. But we are Americans. We are tougher than the times that we live in, and we are bigger than our politics have been.”[/quote]The president wants to submit the bill to Congress next week. Next on his agenda though would be on how to reduce America’s debt deficit. On this issue, the president has pledged to devise a new plan that will be unveiled on September 19.
