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The “Jobs” Speech: Aftermath

Posted: September 8, 2011 | Author: | Filed under: Barack Obama, U.S. Economy, U.S. Politics, unemployment, voodoo economics, We are so F'd | Tags: , |14 Comments

Desperation Time

Reuters has a summary of the “key elements” of President Obama’s speech. Mainly he proposed a payroll tax holiday for employees and employers.

EMPLOYEE PAYROLL TAX HOLIDAY

Obama is proposing a $175 billion one-year extension and expansion of the employee payroll tax holiday that would halve the tax rate to 3.1 percent in 2012.

EMPLOYER PAYROLL TAX HOLIDAY

Obama is seeking $65 billion to encourage small businesses to hire more workers. This includes halving employer payroll taxes to 3.1 percent for the first $5 million of a company’s wage bill in 2012, which the administration says will reach 98 percent of small businesses. He also wants a complete payroll tax holiday for increasing the size of the payroll by up to $50 million above the prior year, either by hiring new workers or raising the salaries of the existing labor force.

That would help the people who still have jobs, I guess, but it hasn’t done much to create new jobs so far.

In addition to that:

He proposes to help homeowners, and says he’ll have a plan in the next couple of weeks–no specifics.

$5 billion to provide 100% tax deductions for businesses that spend money on new plants and equipment. Of course, as Dakinikat has repeatedly told us, that won’t create jobs as long as consumers can’t spend.

$85 billion for state and local governments, which would be good if the Republicans would allow it through. This would include money for improving schools, helping keep teachers and other public employees in their jobs, improving already foreclosed homes, and money for young people.

$50 billion for transportation infrastructure. Hasn’t this one been around for awhile? I don’t think the Republicans will go along.

A one-year extension of unemployment benefits and tax credits for the long-term unemployed.

So what do you think? What are you hearing in the media?

Personally, I think it’s time for Obama to give a speech like this one.

14 Comments on “The “Jobs” Speech: Aftermath”

  1. bostonboomer's avatar bostonboomer says:
    September 8, 2011 at 7:53 pm

    Eric Cantor okays the payroll tax cut.

    http://www.latimes.com/news/politics/la-pn-cantor-obama-speech-20110908,0,6935387.story

    Whoop-de-do!!

    • ralphb's avatar ralphb says:
      September 8, 2011 at 7:56 pm

      Just frakking great. One thing they shouldn’t do and the asshats agree to it. I hate them all.

  2. ralphb's avatar ralphb says:
    September 8, 2011 at 7:55 pm

    One and Done Obama!

  3. bostonboomer's avatar bostonboomer says:
    September 8, 2011 at 7:57 pm

    Mark Thoma says the jobs speech was “bolder than expected.”

    The speech was delivered with a passion and commitment we haven’t seen from the president for some time, and it was effective at placing the responsibility for action on Congress. And pointing out that all of the programs in the Jobs Act have been supported by Republicans in the past didn’t hurt his arguments.

    However, there are some concerns. First, the speech itself lost its focus on job creation toward the end. Instead of jobs, the speech talked about the deficit, red tape regulation, the need to accept painful cuts in social programs, and so on — all favorite GOP issues. If that’s an indication that the commitment toward job creation will be similarly derailed by these issues in the future, then that’s worrisome.

    Second, and more importantly, I didn’t like the way the package would be paid for:

    The agreement we passed in July will cut government spending by about $1 trillion over the next ten years. It also charges this Congress to come up with an additional $1.5 trillion in savings by Christmas. Tonight, I’m asking you to increase that amount so that it covers the full cost of the American Jobs Act. …

    So we can reduce this deficit, pay down our debt, and pay for this jobs plan in the process.

    It would be much better to pay for the package when the economy is on better footing than paying for it “by Christmas.” Paying for it immediately will offset some of the stimulus and make it less effective, and I would prefer legislation that triggers new revenue and spending cuts when, say, the unemployment rate falls below some threshold such as 6.0 percent. But political realities rule this out.

  4. bostonboomer's avatar bostonboomer says:
    September 8, 2011 at 8:07 pm

    From the Progressive Change Committee:

    “Tonight, President Obama proposed corporate tax cuts paid for with cuts to Medicare benefits. Forcing Americans to choose between jobs and Medicare is unthinkable, especially for a Democratic president. America needs a massive government investment in jobs – not Medicare benefit cuts, not corporate tax giveaways, and not telling the unemployed to work for big corporations for free.”

  5. JeanLouise's avatar JeanLouise says:
    September 8, 2011 at 8:43 pm

    Obama has cemented his status as a Republican. Taking money from Social Security and Medicare to pay for this proposal should be unacceptable to any Democrat.

  6. Peggy Sue's avatar Peggy Sue says:
    September 8, 2011 at 9:52 pm

    I read a disturbing article over at Huffy Pooh, which reiterates a comment that my husband made when he first heard about the payroll tax cut. Basically that though the short term effects may be beneficial [everyone likes more money in their paycheck] it would further defund SS. The article at HP is by Richard Eskow, who refers to the cut as a poison pill. Link here:

    http://www.huffingtonpost.com/rj-eskow/obamas-tax-holiday-a-pois_b_793526.html

    No wonder the Repugs like the idea.

  7. ralphb's avatar ralphb says:
    September 8, 2011 at 10:20 pm

    The best way to stimulate demand is to give people some money so they will spend it.
    — George W Bush

    True quote, but what do we get from Obama now? The Catfood commission II which could be known as the “Joint Select Committee on Human Sacrifice” to do the dirty work.

  8. minkoffminx's avatar Minkoff Minx says:
    September 9, 2011 at 1:52 am

    “I do think we have a chance to do something substantive and to get at this terrible unemployment in this country…I think he got it right.”

    – Maxine Waters

    Hook, Line and Sinker
    http://www.cbsnews.com/8301-503544_162-20103688-503544.html

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