In a time where college graduates are struggling to find jobs, often times excepting employment that does not even require a college degree. In an unusual move by the Obama administration, President Obama presented a fully drafted copy of the Jobs Plan legislation to Congress to be voted upon. The plan utilizes a combination of tax cuts and spending in an effort to boost short-term employment, while jump-starting the economy towards long-term growth. In light of past debates regarding spending, Republicans and Democrats appeared unsupportive of the bill, which would be accompanied with a $447 billion dollar price tag. So far no congressional action has been taken on the plan and it is yet to be seen if the plan or any part of it will become law.
The tax cuts will be aimed at small businesses and middle class working families with the biggest component cut out of payroll tax, which is collected for social security. The plan will cut the payroll tax in half, targeting 98% of U.S. businesses, which have payroll below this threshold. This will give the average American family, based on median income, an additional $1,500 a year in their pocket. The plan also calls for allowing more homeowners to refinance their mortgages and has the potential to save homeowners around $2,000 a year.
Companies that hire new workers, or increase wages of existing workers will get a complete payroll tax holiday on the added payroll. Companies can receive a $4,000 dollar tax credit for hiring those who have been long term unemployed, and a tax credit for $5,600 to $9,600 for herring unemployed
veterans. The plan also extends a 100 percent tax write-offs for any equipment a company purchases.
The spending side of the job plan involves infrastructure spending, aid to states to retain teachers and rebuild schools, as well as a series of measures aimed at helping the unemployed. On the infrastructure side the plan calls for the creation of an infrastructure bank, an idea that is already moving through Congress as a bi-partisan bill, and modernizing at least 35,000 schools across the country. There is also a part of
the plan title “Project Rebuild,” which seeks to put people to work rehabilitating homes, businesses, and communities utilizing private capital, scaling land banks, and other public-private collaborations. The school revitalizations planned for in the bill would see new science labs, internet-ready classrooms, and other renovations at schools in both rural and urban areas across the country. Beyond supporting just capital projects at public schools the plan also includes funds to prevent the laying off of 280,000 teachers, as well as helping
to keep cops and firefighters on the street. The Jobs Plan proposes to aid displaced, temporary, and voluntary workers with on the job training, building on innovative state programs already in place from around the country. It also promotes state programs to aid the unemployed in starting their own businesses, and seeks to bar discrimination against unemployed workers and also to expand job opportunities for low-income youth and adults through a fund for subsidized employment, innovative training programs for seasonal and year round jobs.