The American Jobs Act (S. 1549) is a bill proposed by US President Barack Obama in a nationally televised address[1] to a joint session of Congress on September 8, 2011.[2] He said that it consists of a set of non-controversial proposals designed to get Americans back to work, and he repeatedly urged Congress to pass the bill "right away"; he also said that the bill would not add to the national deficit and would be fully paid for.[3] In anticipation of criticism that the legislation was motivated by the upcoming election, the President noted that the election is fourteen months away and that Americans do not have the luxury of waiting fourteen months for jobs to be created.[2][4]
Background
Since the start of the great recession, unemployment and underemployment levels in the U.S. have remained stubbornly high. Consumer confidence has remained shaky, raising the specter of a double dip recession.
In August 2011, the U.S. Congress agreed on raising the debt ceiling and a reduction in deficits within the next decade. The acrimonious debate leading to the passage of this bill made clear that some in the United States Congress considered national default to be a viable political option. Following passage, Standard & Poor's downgraded the United States top credit rating from AAA to AA+ citing various factors including the long term political struggle to raise the debt ceiling and a lack of credible plans to reduce federal spending and increase tax revenue.[5] Economic data released in July and August 2011 came in worse than expected, and worldwide stock markets tumbled quickly raising the fear of a new recession.[6] After Labor Day, President Obama, in a major speech[1] before a joint session of Congress,[2] detailed a major new jobs package and urged the Congress to pass it without delay.
President's address to Congress
Obama's speech aired in the United States on 11 television networks during primetime, including ABC, CBS, NBC, CNN, Fox News Channel, Fox Business Network, MSNBC, and CNBC. Nielsen Media Research estimate that 31.4 million viewers watched the speech, 10 million less than the 2011 State of the Union Address, but six million more than his March speech on Libya.[7] The President's address was rescheduled to September 8 after his original request to deliver the speech on September 7th was rebuffed by Speaker of the House John Boehner, who cited a clash with a Republican Presidential debate already scheduled for the same time and stated that more time was required to secure the House for the President's visit.[8] The President made his speech at 7:00pm Eastern, instead of the usual 9:00pm start for presidential addresses to joint sessions of Congress, so he would be finished before the first game of the National Football League season between the New Orleans Saints and the Green Bay Packers at 8:30pm.[9][10]
The Republicans declined to broadcast an official opposition response, as it is traditionally done after a presidential address to a joint session of Congress. This decision was criticized by House Minority Leader Nancy Pelosi as being "disrespectful" to the president and the American people.[11] However Boehner denied any of this. "This is not a State of the Union address. The American people shouldn't be forced to watch some politician they don't want to listen to. And frankly, most of them would rather watch a football game," he said, referencing the aforementioned Saints-Packers game.[12] However, Congress members were still available to respond to Obama's speech individually.[12] Boehner later released a statement after the speech saying that "the proposals the president outlined tonight merit consideration. We hope he gives serious consideration to our ideas as well."[13]
Elements of the proposed bill
The White House provided an "American Jobs Act Fact Sheet", which summarizes the key provisions of the bill. Some of its elements include:
- Cutting and temporarily eliminating payroll taxes for qualifying employers and up to 160 million medium and low income employees.
- Spending $35 billion of additional funding to protect the jobs of teachers, cops and firefighters
- Spending $25 billion to modernizing at least 35,000 public schools.
- Spending $50 billion on new & existing infrastructure projects.
- Spending $15 billion on a program that would hire construction workers to help rehabilitate and refurbishing hundreds of thousands of foreclosed homes and businesses.
- Spending $62 billion for a Pathways Back to Work Program for expanding opportunities for low-income youth and adults.
- Extending unemployment benefits for up to 6 million of the long-term unemployed.
- Providing a maximum $4,000 tax credit to companies that hire people who have been unemployed for longer than six months.
- Providing tax credits to companies who hire unemployed or disabled veterans.
- Creating the National Infrastructure Bank, originally proposed in 2007, to help fund infrastructure via private and public capital.
- Creating a nationwide, interoperable wireless network for public safety, while expanding accessibility to high-speed wireless services.
- Creating additional regulations on businesses who discriminate against hiring the long-term unemployed.
Legislative history
In the Senate, the bill was stalled by Majority leader Harry Reid on September 27, 2011 who said "I don’t think there’s anything more important for a jobs measure than China trade, and that’s what we’re going to work on next week," with emphasis on taking up more tenuous legislation which is less likely to draw political attention. [14]
In the House of Representatives, the bill has yet to be introduced or sponsored so no bill number has yet been assigned, but as a matter of procedure; on September 12, 2011 The Speaker pro tempore laid before the House a message from the President transmitting the legislative proposal, referred to committee and ordered it to be printed (H. Doc. 112-53).[15]
Related bill
On September 14, Republican Louie Gohmert introduced his own "American Jobs Act of 2011" into the House as H.R. 2911. The bill would repeal the corporate income tax.[16]
Making the case
President Obama appeared before constituents of Eric Cantor's congressional district to press the Congress to pass his bill immediately.[17] On September 12, he gave a speech in the White House Rose Garden in front of a group of teachers, police officers, construction workers and small-business owners in which he stated that "if Congress does not act, just about every family in America will pay more taxes next year. That would be a self-inflicted wound that our economy just cannot afford right now."[18] In Speaker Boehner's home state of Ohio, Obama gave a speech described as "fiery" in a Columbus high school that led to the audience chanting: "Pass this bill!"[19] In a campaign-style rally at North Carolina State University, Obama told college students "Every single one of you can help make this bill a reality. … The time for hand-wringing is over. The time for moping around is over. We've got to kick off our bedroom slippers and put on our marching shoes."[20] At a black-tie dinner for the Congressional Hispanic Caucus Institute, Obama pitched his jobs plan to Latinos. "The real problem isn't the members of Congress in this room," he said to an audience which included several congressional Democrats. "It's the members of Congress who put party before country because they believe the only way to resolve our differences is to wait 14 months till the next election."[21]
Reception
Republicans
Republicans and conservative radio hosts were quick to label the American Jobs Act as "son of stimulus" after the controversial American Recovery and Reinvestment Act of 2009 which did not create as many jobs at the Obama Administration had hoped for. Alternatively, new reports show that Martin Feldstein, a Harvard economist, put the price tag on the American Jobs Act at about $200,000 per job, which republicans argue as the true cost for the proposed legislation. [22]
Republican Majority Leader Eric Cantor indicated that it would be a tough bill to pass quickly: "Insisting that this body and the two sides here agree on everything is not a reasonable expectation." [23] House Speaker Boehner said the president’s bill should be analyzed immediately by the Congressional Budget Office for scoring before the administration and Congress pursue negotiations.[18]
Democrats
Many democrats have "balked" at the bill, siding against the Republicans, especially those facing difficult reelections in congressional districts where they are hesitant to support unpopular legislation. [24] A majority of the democrats support individual components of the bill, but are unwilling to commit to the bill in its entirety, despite the White House's disapproval of the weak showing of support. Some democrats from core democratic districts oppose the American Jobs Act because it gives more tax breaks, thus contributing more to the federal deficit. [25]
References
- ^ a b "Full text of Barack Obama's jobs speech". The Guardian. September 9, 2011. Retrieved September 9, 2011.
- ^ a b c Sutton, Nikki (September 1, 2011). "The President's Jobs Address Enhanced with Charts and Stats". whitehouse.gov. Retrieved September 9, 2011.
- ^ Calmes, Jackie (September 17, 2011). "Obama Tax Plan Would Ask More of Millionaires". Retrieved September 18, 2011.
- ^ President Obama Presents American Jobs Act, September 8th (Interactive Video)
- ^ Detrixhe, John (August 8, 2011). "U.S. Loses AAA Credit Rating as S&P Slams Debt Levels, Political Process". Bloomberg L.P. Retrieved September 11, 2011.
- ^ Condon, Bernard; Rugaber, Christopher (August 22, 2011). "Fear feeds Faltering Stock market". The Associated Press. The Olympian. Retrieved September 9, 2011.
- ^ Jackson, David (September 10, 2011). "Obama's jobs speech draws 31.4M viewers". USA Today. Retrieved September 10, 2011.
- ^ Bobic, Igor (September 1, 2011). "Speechgate: How Obama's Jobs Address Got Postponed". Talking Points Memo. Retrieved September 9, 2011.
- ^ Alison Gendar and Thomas M. Defrank. President Obama punts to earlier time against NFL game after caving to GOP of televised jobs speech. New York Daily News, 9/1/2011.
- ^ Relax football fans: Obama speech won't trump NFL. Reuters. 9/2/2011
- ^ No (formal) GOP response to Obama speech. USA Today. 9/7/2011.
- ^ a b Boehner: Most people prefer football to politics. CBS News. 9/8/2011.
- ^ Republicans' reaction to Obama speech is lukewarm -- and that's a start. Los Angeles Times. 9/8/2011.
- ^ Helderman, Rosalind. "Obama jobs plan: Senate Democrats won't take up bill immediately, Harry Reid says". Newspaper. Washington Post. Retrieved Sept 28th 7am.
{{cite web}}
: Check date values in:|accessdate=
(help) - ^ 2011 Congressional Record, Vol. 157, Page H6049 (September 12, 2011)
- ^ Quinn, Rob (September 15, 2011). "GOP Rep's Jobs Bill Would Abolish Corporate Taxes". Newser. Retrieved September 15, 2011.
- ^ Runningen, Roger; Talev, Margaret (September 9, 2011). "Obama Tells Virginia Voters to Press U.S. Congress for Action on Jobs Plan". Retrieved September 9, 2011.
- ^ a b Runningen, Roger; Goldman, Julianna (September 12, 2011). "Obama Says Congress Should Act on $447 Billion Jobs Plan With 'No Delays'". Bloomberg L.P. Retrieved September 13, 2011.
- ^ Werner, Erica (September 13, 2011). "Obama pushes jobs plan in Boehner's state". Associated Press. msnbc.com. Retrieved September 14, 2011.
- ^ Superville, Darlene (September 15, 2011). "Obama touts jobs bill benefits for small business". The Associated Press. msnbc.com. Retrieved September 15, 2011.
- ^ Wilkie, Christina (September 15, 2011). "Obama Seeks Latino Support For Jobs Bill". The Huffington Post. Retrieved September 15, 2011.
- ^ Forer, Ben. "$200K Per Job? Timothy Geithner Says White House Jobs Plan Is Still a Bargain". ABC News. ABCNews. Retrieved 28 September 2011.
- ^ "Barack Obama Facing Standoff with Congress Over US Jobs Plan". The Guardian. September 9, 2011.
- ^ STEINHAUER, Jennifer. "Some Democrats Are Balking at Obama's Jobs Bill". New York Times. New York Times. Retrieved 27 September 2011.
- ^ Cooper, Helene. "White House Would Cut Deductions to Pay for Its Jobs Plan". New York Times. Retrieved 30 September 2011.