It can be difficult to decipher all the politically driven messages in the media as President Obama proposes the American Jobs Act of 2011. One publication may slant the president's jobs bill as class warfare while another may present frustrations for other parties not accepting the bill outright. So, here's a quick rundown of the American Jobs Act of 2011. It's important and has the potential to impact your future. By increasing taxes on the wealthiest Americans (those with adjusted gross incomes over $250,000), the bill will produce $447 billion, which will then:
- Provide job opportunities for low-income young adults through training programs and summer/year-round jobs
- Cut payroll taxes in half in 2012, saving around $1,500 per year per family
- Invest $50 billion in roads, rails and airports, employing more construction workers
- Provide tax cuts to small businesses, allowing them to hire more workers
- Provide tax cuts to small businesses that hire veterans or simply increase their payroll with new employees or raised wages
- Prohibit employers from discriminating against the unemployed
- And invest $35 billion to protect teachers, policemen and firefighters from being laid off or not hired.
Obviously the main talking points of the bill are positive steps for the U.S. economy, but there's also and obvious reason for outrage against it: the rich don't want their taxes increased. Democrats further proposed an amendment to only tax Americans making $1 million or more per year. The 5.6% increase would raise $453 billion, which is $6 billion more than originally planned for. This essentially means those making $1 million would take home $594,000 after taxes instead of $650,000. Congress is set to vote Tuesday the 11th, but hopes of obtaining the 60 votes needed to pass the bill are slim.
On the positive side, this bill is completely paid for and will not increase the U.S. deficit. On the negative side, it will probably fail or get changed beyond recognition due to conflicts within Congress and its parties.
Do you think this bill is good for the economy or potentially harmful?