In his State of the Union, the President outlined several job creation programs which have since been reinforced in his budget. CNN summarized its key components well. From cnn.com Small Business: Obama would eliminate for one year capital gains taxes on new investments in the stock of small businesses. The details are not clear but the plan builds on an existing, less generous, Recovery Act tax break. Obama would also extend through 2010 tax breaks for certain small business capital investments up to $250,000. And small businesses would get a tax break for hiring new employees. He would also eliminate fees for loans made through the Small Business Administration. Those fees had been waived for most of this year, but the funding ran out two weeks ago. Business: All companies would for another year pay fewer taxes on capital expenditures - a temporary benefit that kicked in with the Recovery Act. Infrastructure: Obama would spend approximately $50 billion on infrastructure projects for roads, bridges, airports and ports. The House has talked about spending $70 billion on a similar initiative. Energy: He would offer rebates to consumers who retrofit their homes, making changes such as caulking or replacing windows with more energy efficient products. Obama would also expand a stimulus program that gives greater borrowing power to private companies that create manufacturing jobs producing machines, such as wind turbines, that cut down on greenhouse gasses.
Following suit, the Democratic leadership have introduced their own jobs bill which would both support the President's priorities and add a few new areas of action. Unfortunately, the jobs bill faces an uphill battle and the political challenges of a divided Congress. Conservatives are sparring over how to fund its $80 million price tag, and Democrats are being accused of focusing only on short-term job gains because of the approaching election. As partisan fights, compromises, and the desire for quick results over long-term solutions undermine this debate, addressing these challenges becomes ever harder--but not impossible. There is too much at stake to give up now. Millions of the poorest Americans, many of them already without health care, face dire economic conditions and few job opportunities with no end in sight. Congressional action is essential, and this action must focus on those Americans that most need help--not on the next election or partisan bickering. |
