Titled the American Jobs Act, the proposal includes more than $250 billion in tax incentives for small businesses and employers, according to administration estimates. The rest of the money would be devoted to infrastructure spending, state aid, unemployment insurance, and neighborhood rehabilitation. The president will pay for the proposal by asking the congressional super committee tasked with finding $1.5 trillion in deficit reduction to offset the cost of the package in their proposal.Obama Jobs Plan: $447 Billion, More Than Half In Tax Cuts, To Be Paid For By Super Committee
wait... "super committee"?... when did we create a new branch of government?... and did i miss the vote on who would be on this "super committee"?... apparently the democratic process we fought and died for isn't good enough anymore.
The tax components of the president's plan don't end there. The White House also wants a payroll tax holiday for businesses that add new workers or increase the wages of current employees; a fifty percent reduction of the tax rates businesses pay on the first $5 million in payroll; and a $4,000 tax credit for employers who hire long-term unemployed workers.
this is so stupid, i'll have to tackle it in parts.
- the payroll tax holiday is just removing money from the federal tax rolls... employers aren't going to add workers for the limited tax benefit... they hire workers when they can profitably employ them... even minimum wage is around $15,000 a year, so no single tax incentive will cover that.
- great... the payroll deduction not only takes funds away from the federal rolls (again), it takes matching funds away from my Social Security!... and i love that they have some magical ability to not put money into Social Security, yet somehow you don't lose any future benefits!... (and they say this isn't a Ponzi scheme!)
- who will take $4,000 in graft to hire someone whom no one else wanted to hire before?... you want to hire the best and most qualified... they are already employed!... the only people who will take advantage of this are employers who aren't hiring them long-term to begin with!... they'll get their $4k and fire them when they're done... the most they'll get out of it is one year of minimum wage, then it's back on the breadline... but who cares about that?... that will be after the 2012 election.