Last night, before Congress and the nation, President Obama laid out a plan for creating jobs and restoring vitality to the American economy. The plan includes a $447 billion package of tax cuts and spending initiatives that the Administration believes will provide the impetus for job creation and overall economic growth.
Let take a look at what has been proposed:
| Expansion and extension of the one-year payroll tax cut | $240 |
| Unemployment insurance and jobs programs | 62 |
| Infrastructure projects | 60 |
| Aid to states and local governments($80 billion) | |
| To keep teachers, firefighters and police officers in their jobs | 35 |
| To modernize schools and community colleges | 30 |
| To rehabilitate and refurbish vacant and foreclosed homes | 15 |
| To help low-income youths and adult workers | 5 |
| Total | $447 |
How does break down between individuals and business?
| Employee payroll tax holiday | $175 |
| Unemployment insurance and jobs program | 62 |
| To keep teachers, firefighters and police officers in their jobs | 35 |
| To help low-income youths and adult workers | 5 |
| Total for individuals | $277 |
| Payroll tax holiday for small businesses | $60 |
| Accelerated depreciation of business assets | 5 |
| Aid to states and local governments | 45 |
| Infrastructure projects | 50 |
| National Infrastructure Bank | 10 |
| Total for business | $170 |
How you feel about this deal will probably be determined by your political swaying’s, but the majority of the economists interviewed in this article seem to believe that the benefits of this pending legislation will be anywhere from minimal to meaningful.
With the unemployment rate for the construction industry still hovering around 13.5%, it is obvious that job creation in the industry is badly needed. But with a highly partisan atmosphere in Congress, what is the realistic chance that this proposed legislation will be passed? What is your take on the American Jobs Act?
