More taxes + More spending = More unemployment
Despite bipartisan opposition, President Obama and Senate Democrats have proposed further incremental consideration of his so-called “American Jobs Act.” This week Senate Majority Leader Harry Reid (NV) plans to consider an additional $60 billion in temporary stimulus spending paid-for with permanent, job destroying tax increases. According to the White House summary of the President’s plan, the bill would appropriate $50 billion in stimulus spending for highway, transit, rail and aviation over ten years. The bill would also provide $10 billion to create a Fannie Mae/Freddie Mac style national infrastructure bank to leverage private and public capital to invest in projects. The bank would have an implicit government guarantee, exposing the taxpayers to risk of loss.
To offset the temporary spending, the proposal would contain a 0.7 percent permanent tax increase on Americans earning $1 million annually. The millionaire surtax contradicts the President’s stated goal of creating jobs by burdening the very job creators the nation needs to put Americans back to work. According to the Department of Treasury, 41 percent of all business income reported on individual returns would be hit by the surtax.
HIGHLIGHTS OF THE BILL
IMMEDIATE TRANSPORTATION STIMULUS SPENDING ($50 billion)
FACTS ABOUT TRANSPORTATION STIMULUS SPENDING
FEDERAL INFRASTRUCTURE BANK ($10 billion)
FACTS ABOUT THE FEDERAL INFRASTRUCTURE BANK
What they’re saying in the news
In today’s Washington Post, Charles Lane editorializes on the ‘myth’ that America’s infrastructure is in bad shape. Lane points out that “for all its shortcomings, U.S. infrastructure is still among the most advanced if not the most advanced.”
“Senate Majority Leader Harry Reid declared Monday that Democrats are the only ones “fighting to create good-paying American jobs.” But he again could face a handful of defections from his own party when he brings the next jobs bill to the floor this week.” (POLITICO, 10/31)
“The Senate also could vote on an infrastructure funding proposal, one of four pieces of President Obama’s jobs bill that Democrats are moving. Republicans are expected to filibuster the measure.” (NATIONAL JOURNAL, 10/31)
“Rebuffed twice in their attempts to push through President Obama’s jobs proposals, Senate Democrats are ready to try again. The Senate will hold a vote the first week of November on the $60 billion infrastructure portion of Obama's Jobs Act, Senate Majority Leader Harry Reid (D-Nev.) announced Friday.” (THE HILL, 10/21)
“The administration's $50 billion plan for highway, bridge, and rail upgrades to boost the economy went nowhere in 2010 when both the House of Representatives and Senate were controlled by Obama's fellow Democrats. Washington already funnels $42 billion to states for transportation infrastructure upgrades as part of annual budgeting” (REUTERS, 10/21)
THE REPUBLICAN SOLUTION
The House Republican Plan for America’s Job Creators is focused on removing government obstacles to long-term economic growth—the kind of reforms needed to end the uncertainty facing small businesses and help create new private-sector jobs. Demonstrating a willingness to work with the President to help put Americans back to work, House Republican leaders released a detailed memo September 16th identifying which components of the plan offer potential to find common ground and which simply do not. House Republicans are committed to enacting measures that will support private-sector job creation and remain hopeful the President is willing to work with us in that effort. Learn more about the GOP plan and track the progress of House-passed jobs bills, at jobs.GOP.gov.