Get In The Know: The Obama Job Plan

By Stephanie Berenbaum – September 9, 2011

How Obama’s Words Affect YOU

Last night, President Obama introduced the “American Jobs Act” to congress and to the American people.  If you didn’t get to see it for yourself, here is our Fab & Fru recap, highlighting some of the main ways we think YOU might be directly impacted if this act is passed into law – and mind you…that’s a big IF!

Cut To The Chase

Before we get into all the details, let’s give away the juicy finale - the American Jobs Act comes with quite a price tag – $447 Billion or so – made up of $253 billion in tax cuts and $194 billion in new spending! Now let’s work backwards and see what we’re being promised for all of that money…

Are you An Employee…Or An Employer?

If you are fortunate to be gainfully employed, Obama is proposing some payroll tax cuts in your future – for both employees and employers.  And to encourage hiring, if a business hires a new employee (or gives an existing one a raise) all payroll taxes will be waived.

Been Unemployed for Over 6 Months?

Obama is proposing to extend unemployment benefits.  And to encourage hiring, companies that hire people who have been unemployed for six months or more will get an additional tax credit.

Sick of All Those Pot Holes?  

The Obama plan calls for major infrastructure funding to repair everything from roads and bridges to airports and schools.  If this is approved, thousands of new jobs will be created to complete the work – not to mention your kids might actually have a classroom to study in instead of a trailer!

Are You A Teacher? Or a First Responder?  

Obama is proposing investing billions to keep teachers, police officers, fireman, EMT and others from losing their jobs.  It’s hard to argue with the ‘safety first’ approach…

But… How Do We Pay For It All?

You know how so many of us are trying to cover our costs and at the same time reduce our debt levels? Well, our government has the same dilemma but on a national level. I love the idea of investing in schools and keeping firemen employed, but for a country in debt, where on earth is the money going to come from to pay for it all?

New Debt Super Committee To The Rescue?

In his speech, Obama promised that his plan would be fully paid for – and handed over the dirty work of finding the money to his  ‘New Debt Super Committee’ – who I think really should be called the new debt Super HERO committee because they are really being charged with doing more than Spidey and Wonder Woman could do even on a really good day.

This new Super Hero team is already in the process of trying to find between $1.2 trillion and $1.5 trillion in debt reduction over a decade -and the President has now asked them to add the cost of American Jobs Act to their goal – making their new goal about $2 trillion.  –All this seems sort of like asking someone who is in the middle of running a marathon to tack on an extra ten miles – not impossible but very very difficult.

So Where Do We Go From Here?

Before the American Jobs Act has an impact on anyone, it has to be passed, which is likely to be tough given the current contentious state of relations between the two parties.  Obama was careful in his speech to continually point out that a lot of what he is proposing are ideas that had enjoyed bi-partisan support in the past.  However, now we’ll have to wait and see if  the Democrats and Republicans can hammer out an agreement – or if the current deadlock will continue right on until the next election cycle…






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2 Responses to “Get In The Know: The Obama Job Plan”

  1. Franny says:

    I didn’t see Obama speak last night, so thank you so much for sharing this! I greatly appreciate the Fab and Fru news update! :)

  2. Louie says:

    Great Kick-Off Campaign Speech. 1) Existing job credit reduction is simply the extension of the 2% withholding tax exemption. 2) $4K new hire rebate credit for Companies is temporary only and does not give business confidence to permanent hire. 3)Opening up trade lanes with other Allies are a good thing. 4)Doing infrastructure repair work is Temporary only and didn’t work the first go-round. 5) Still staunch on increasing tax rates for the supposed rich… $250K combined income annually is rich? Building new schools will help education? Also temp. work. Actively supporting the 7% of workers in Unions a good thing? What about the other 93%? Yes, extending unemployment subsidies is a must. Then we get to the point of how all of this is to be paid for. This is a joke in itself.

    This didn’t work the first two times and will only replicate itself again. Oh, forgot to mention the Fed mandating lower banking restrictions for refinancing and troubled mortgages. This is a good thing too. As you can see, of course there will be bipartisan support for some of the sensible measures, but not for the other wish list of failed remedies.
    Big brother has never been the answer, but he is a great speaker…

Any Thoughts?