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…