Harry Reid, in a rare bit of liveliness, has taken control of the jobs bill in the Senate, paring it down to its essential parts.
Senate Majority Leader Harry Reid (D-Nev.) is rewriting a jobs bill after Democrats complained of too many concessions to Republicans.
Reid announced Thursday that he would cut back on the jobs bill Senate Finance Committee Chairman Max Baucus (D-Mont.) introduced only hours earlier, essentially overruling the powerful chairman.
“We’re going to move this afternoon to a smaller package than talked about in the press,” Reid said.
The bill now include four components: tax credits for employers who hire new workers; a provision allowing businesses to write off the cost of capital investments; Build America Bonds, which allow state and local governments to lower their borrowing costs; and a one-year extension of funding for transportation programs in the Surface Transportation Act.
Reid is absolutely right that hanging a bunch of unrelated items onto the bill, like tax extenders and Patriot Act extensions and the rest, would just add to the criticisms about process and distract from the real message. That said, what is the bill now?
Reid is slicing off the top four job-creation provisions from the Baucus bill. That would be the Schumer-Hatch job creation tax credit, the one-year extension of the Highway Trust Fund, the investment in Build America Bonds to encourage state and local infrastructure spending, and the write-off for small business capital expenditures. According to Baucus and Grassley’s numbers, the total price tag for such a bill would be $50 billion. CORRECTION: I read something wrong, this would be a $15 billion bill.
Reid set aside the social safety net spending, extending unemployment benefits and the COBRA subsidy, into a separate bill. That would net another $25 billion. Reid has promised to take that up later in February, after the Senate recess.
So you’re talking about a $50 billion jobs bill ($48 billion for the tax credit and capital expenditure write-off, so basically 96% tax breaks), with $25 billion in safety-net spending later.
There’s your “jobs bill.”
I’m happy for the small pleasure of seeing Reid tell Max Baucus to STFU. But really, this isn’t much of a bill, even pared down to its alleged job-creation elements.
UPDATE: It should be noted that this is part one of what Reid is calling a “jobs agenda,” and I do appreciate keeping it simple. But, you know, actually do something about the problem, too.





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Didn’t the Democrats say that Reid couldn’t do such a thing as being an excuse for having to take Baucus’s crappy legislation? Reid is just showing how much of a lie so-called HCR is.
This pathetic bill, like the HCR bill, isn’t worth doing. All this political drama for nothing. Oh they must be so happy for all their work. So many things they could do to really create jobs, and they choose…………tada! F*ck all.
the total price tag for such a bill would be $50 billion.
Could be directly spent on a lot of infrastructure.
February is very short, and people lost their previous COBRA assistance at the end of the month. Reid should do the COBRA standalone now; getting GOP obstruction on the record on every single one of these issues will be important, won’t it?
Lesseee: $50 billion…
I make it that works out to about 20 weeks worth of funding for the two “operation enduring shitmires”.
Big hairy deal.
To put the 50 billion in perspective:
http://www.cnn.com/2009/POLITICS/09/09/homeland.security.headquarters/index.html
That’s ONE building.
Be the 1000th follower of FDL on Twitter. I just became the 999th!
I think they’re going to extend this out a week to give themselves enough time to pass it on the back end. That’s what I’m hearing, anyway.
Harry doesn’t know he’s dead yet, I guess. Not to worry, it’s just a postmortem spasm.
Move along. Nothing to see here folks.
I’m curious about this “provision allowing businesses to write off the cost of capital investments”. Business already have a scheduled write-off depreciation. Does this provision play into the hands of the investment crowd, allowing them to run speculation rackets even cheaper? Philbro was a very small business, which did immense speculation. I think AIG-FP can be classified as a small business. They certainly don’t need any more of our help.
Agree.
People have to understand what it is, who it helps what it does.
And like you, I’m glad Harry Reid finally seems to be cutting to the chase a bit. If that leaves Baucus by the roadside, so be it.
We’re fucked. And it’s gonna take the WHOLE country down, not just the middle class.
For a trillion or so, this country could put back to work everyone who wants to, and make a BUNDLE of money on taxes, investments and the general productivity that accompanies high employment/low unemployment.
Instead, a smidgin of tax breaks for small businesses who don’t have customers and still can’t hire new employees.
Teh stoopid, it hoits . . . . it burns, like an STD in the pee pee regions of our loins.
I agree – not worth passing.
The payroll tax cut for workers is not in this bill – instead there is a payroll tax cut for employers – and when is the last time an employer hired a worker for a reason other than increased demand.
This will increase job count by zero.
Meanwhile high turn over jobs like McDonalds will get a welfare check as they keep up with their normal turnover.
I’m fucked, no unemployment now. I wonder what Harry’s suggestion would be when all the creditors keep calling asking for money? Ah just hold on til the Senate gets back from vacation, we can all just wait and have all the panic attacks we can muster while waiting for someone to get a clue.
Thanks so much, Senators. You’re all idiots.
Build America Bonds.
“The U.S. Government gives the issuing municipality or state a 35% rebate on the interest that the issuer pays to the bond holders. This is a huge benefit for local governments.
We have not yet found out why, but it is apparently giving a big benefit to the buyers of the bonds who are getting an income stream at well below market prices for comparable issues. In some cases the BAB bonds are pricing at 149 basis points over comparably rated corporate bonds.
Where is the inefficiency coming from in this bond offering? Who is taking the differential, the vigorish, being granted to the state and cities? Who are the underwriters and the market makers? Who are the big market makers besides Pimco? What are the fee structures being charged compared to the overall bond market?
Meredith Whitney, star analyst that she is, was the closest with her $4.65 prediction. She thinks the stock has lots of room to run, notes Fortune. Goldman, in her mind, will surf the economic woes now roiling the country. Goldman is a top underwriter of municipal bonds and the No. 1 underwriter of Build America Bonds. ”
http://jessescrossroadscafe.blogspot.com/2009/07/buy-america-bonds-paying-premium-to.html
accounting shenanigans are NOT cash to small businesses,
they are money to the fortune 1000 whose main products these days are:
consultants, powerpoints, thieving management, corruption, accounting shenanigans (see “corruption”)
NO incumbents, no way, no how
(well,except grayson.)
rmm.
No, you’re not — that’s going into a separate bill:
Right, but shouldn’t he take this part up first, before his nice vacation? No hurry, but unemployment benefits for a lot of people are running out in late Feb/early March. Maybe they want us to feel a little suspense on top of our massive frustration?