The House GOP leadership has written a memo to their caucus picking and choosing what they would be willing to support in the American Jobs Act. The numbers come out to support for 1/44th of the overall price tag, about 2% of the total bill.
As you may know, the AJA is comprised of about 57% tax cuts and 43% spending initiatives. So in the main, House Republican leaders tossed out the spending and embraced a few of the tax cuts. They also rejected the tax hikes on corporations and the wealthy to pay for the bill.
John Boehner, Eric Cantor, Kevin McCarthy and Jeb Hensarling, who wrote the memo, took advantage of the President’s backtracking of an “all or nothing” approach to the bill, and stressed “areas of common agreement” in the plan. Here’s what they picked out (White House estimated cost in parentheses):
• Extending the 100% bonus depreciation for business, basically a tax break on capital purchases. ($5 billion)
• Expanding incentives for hiring veterans, in the form of a tax credit to business. The GOP wants to actually build on this and add education and job training assistance to it. (n.a.)
• Georgia Works-style programs for job training for the unemployed. I’ve noted on a couple occasions the concern with this approach. “While the President links these reforms to a blanket extension of extended (up to 99 weeks) UI benefits and new federal spending, there is no reason we cannot move forward on these areas of agreement,” the memo says. In other words, ditch the extension of UI and just institute Georgia Works. ($5 billion)
There’s also a discussion of infrastructure funding, but it’s shut down by saying that “adding more money to the same broken system is more likely to produce waste and inefficiency than meaningful results.” So all they want to do is “reform” the current system with no new money in an attempt to get money into job sites faster. And the methods are the typical regulatory waivers we’ve come to expect from Republicans, along with a take-up of Tom Coburn’s idea, which almost allowed the FAA authorization to expire, to set aside the 10% mandate for spending on “enhancements,” which include bike safety and other priorities.
On the payroll tax cuts, the single largest element of the American Jobs Act, GOP leaders twist themselves in knots coming out against a tax cut. They say that because it’s temporary, it will lead to a larger tax increase when it ultimately expires. They link the limit on itemized deductions to it for no real reason other than they’re both in the bill, and say this would hurt charities and churches. And they link the expiration to the Bush tax cuts to it for no reason whatsoever. They close with a CYA take:
House Republicans are supportive of tax relief for working families and small businesses, but the temporary relief proposed by the President must not cause unforeseen harm to the economy 15 months from now and it shouldn’t be offset with permanent tax increases; and it shouldn’t come at the expense of the nation’s charities. That said, a commitment to honest and fruitful discussions between the White House and Congressional Leaders could lead to potential bipartisan agreement on a plan that avoids these downsides and provides tax relief for the middle class that encourages short- and long-term economic growth and job creation.
I don’t really know what that means, but it doesn’t sound like there would be any agreement on it, if they don’t want to cause “uncertainty” 15 months down the road. I guess they only want the uncertainty to crop up 3 months down the road.
The only other “areas of agreement” on the American Jobs Act cited by House GOP leaders are things not in the American Jobs Act, like withholding 3% of payments from contractors until services are provided, or “reducing regulatory burdens on small business capital formation” (there’s a crowdfunding piece in the AJA, but it’s really a micro-idea), and pending free trade agreements. The memo outright rejects aid to state and local governments, school construction, the Neighborhood Stabilization Fund, and all the pay-fors. And they used the carping from Congressional Democrats as a reinforcement of their positions.
If you go back to the White House fact sheet on the American Jobs Act, the three programs they support – business expensing, incentives for hiring veterans and the Georgia Works-style UI program, represent $10 billion of the $447 billion bill. The veterans’ hiring initiative is given an “n.a.” in the White House fact sheet, but it would cost money to deliver tax credits of between $5,600-$9,600. I don’t really know how to model that, but let’s be hugely generous and say that leads to the hiring of 100,000 veterans. That would cost roughly another $760 million.
So at best, you’re talking about a $447 billion jobs bill whittled down to no more than $11 billion. The memo closes by saying that “We are, however, committed to passing legislation to implement the policies in the areas where agreement can be found to support job creation and long-term economic growth.” With these numbers, I’m not sure why they’re even bothering.




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I imagine Obama would be willing to compromise on $6 billion.
At least as a starting-point for negotiations.
Trying to say something sane and optimistic: Obama should pound the GOP on forcing a continuation of the 40 years of economics of depression and deflation. He should say he now understands how he has been wrong to accept that approach. Then make the case in comprehensive language why it is wrong, what it is doing to the world and why the turn around can only come from wise government spending world wide. We have for 40 years lived the conservative economics of contraction and what we have is contraction of incomes and the promise of a decent standard of living.(as we speak the median income for US workers is now fallen below what it was in the 1970s)
Hah! some delusions I am having today.
Georgia Works programs have no obligation to hire these 8 week employees, no costs to employers, and will become revolving doors for the jobless. Jebus fnnin Christ! Obama is more Republican than Reagan. The real world unemployed need real jobs, with real living wages, and real benefits. Georgia Works hired 14 people in July! Hot dog, Obama! What the F*ck is wrong with you???!!!
As Bill Mahar (sp) so eloquently stated, “Its not that they don’t like the food. They don’t like the waiter.”
Was anybody actually expecting a different result; Obama backs down and the republicans don’t move.
Yes we can Yes we did Yes you should vote for more of this.
OMG fire all of these bastards.
Who cares? AJA = dogshit. Same old, same old beltway thinking. Dreamed up by clowns, it’ll be killed off by clowns.
BS. You can eat that food if you are really such a bold and brave person. This R and D kabuki obfuscates that the ‘food’ is more looting. This jobs! crap plan involves renting private capital to fund a national infrastructure bank with dividends/interest going to private banks or investors. Don’t you get it?? It does not matter who is serving the food, it is all poison.
We all know the answer.
There’s nothing wrong with him. He’s doing as ordered and securing a set life for him and his. Greed is the new american exceptionalism.
The Republicans must be counting on their shutdown of the jobs act long before the election going down the memory hole by election time, where they hope the public will only see Obama and no action on jobs.
They’re shortsighted, though; continued failure to invest in the well-being of the public is going to in years to come produce an entirely different outcome, completely unfavorable to both parties.
Under Georgia Works, jobless individuals collect unemployment benefits in exchange for participating in a job training program. Indeed, the UE money goes to a company that’s looking for new hires which then uses that money to take on an unemployed individual and pay that person while they receive on-the-job training. If the company then hires the trainee, it has just avoided the cost of training the person. So – earn a paycheck, learn new skills and showcase oneself at an employer on a tryout basis. Indeed it is voluntary in Georgia but you get 24 hours per week of on-the-job training for up to eight weeks if you sign up, with a stipend to help cover childcare and transportation expenses while you train. Indeed New Hampshire has adopted the Georgia Works template.
I do not understand what the problem is unless the assumption is that this would be unavailable to the 99′ers and indeed unavailable to those with more than 13 weeks of UE – guess I missed your post explaining the problem. What are the rules for getting into the Obama/Georgia program?
These politicians all of them are nothing better than toilet bowl cleaners hawking……………
http://www.2000flushesbrand.com/
Here is a song to lighten your day David..tu for post
http://www.youtube.com/watch?v=Q0o0l7ekKvk
You work hard, your aim to make the best of a bad situation has my respect. My problem is I have no respect for any of them. This patriarchal/dominator culture of death is not my cup of tea. Sophia/Gaia/Earth will spit us out one day. Our salvation has nothing to do with politics or religion or any ism’s. It has everything to do with wisdom of which we are without.
http://www.metahistory.org/
OT, Both Ted Kennedy’s and Walter Mondale’s daughters, both age 51, just died.
Well ain’t that just dandy.
More tax cuts.
More pandering to businesses. And not even small businesses. Large corporations are the major benefactors.
And of course a slave program, oops I meant Georgia works. Nothing like keeping people constantly on the edge. It’s a win win for them. When it becomes nationally instituted, that will be the only type of “jobs” available.
Don’t worry bout living, because it is now just about survival. And this program will cement people into a slave caste permanently.
Of course this was always the plan.
BTW, once again, in case anyone didn’t know, most of FDR’s New Deal was executive order. WPA, CCC, … all executive orders.
Osterity could pull out his pen this very second and make it happen. But he won’t. He’s solidifying his future as America falls. Slow and painful death.
there’s a crowd-out concern that businesses will just rent free labor rather than hiring people
Harry Reid needs to say no to the Repubs gutting the bill and then tell Obama no way.
What we really need is a school bus full of pregnant orphans to fall into a river on an unsafe bridge to wake people up.
As for Obama SomethingBlue is right, Obama will counter with, “how about we make it a $6 billion bill and finally settle for $0.5 billion and then he’ll send the hapless Jay Carney out to say “we came this close to getting revenue” I lost all faith in the weak Obama ever sticking to his guns and fighting for the Democrats,
Instead he’ll surrender to Boehner and then scold the “professional left”
House Republicans
Whittle Down $447 Billion American Jobs Act to $11 Billionacting Republican.Why give them something they can whittle?
I know, I know.
Why stick your neck out when all this was really just for show and tell.
O’s doing the best he can. /s
Just so you know, although I am up there in years, I lost everything…but for the generosity of my kids I would be living in some little box apartment trying to make my SS stretch.
And even then I would be better off than those who live on the street, people who had jobs, people who are not bums and there by the circumstance of their condition.
We must be on the same pipe. I agree.
Anyone who can get the #1 post at Morning Swim to link to his site should be able and willing to keep another window open to google to spell a name correctly.
I’m disappointed in you.
House Republicans Whittle Down $447 Billion American Jobs Act to $11
Billionbucks.Went ahead and fixed the typo…
Maher’s show was a hoot last night.
There’s nothing new about greed typifying the the American corporate and political systems. It’s just that the advent of new technologies has increased our access to the agenda of the oligarchs to the point where their machinations have become blatant, and still the American public refuses to view it objectively.
Wow, Obama came out with guns blazing on this one….knowing full well that the rethugs would pass none of it. Where was the “populist Obama” during health care, war debates, environmental laws, Eliz Warren nomination, Dodd Frank inaction by the CFTC, bush tax cuts for billionaires, or for that matter, anything his base wanted when Dems controlled both houses ? Maybe I just missed the “populist Obama” during those days, maybe I wasn’t paying attention. The guy is a conservative republican operative, he only speaks up on Dem values when there will be ZERO chance of passage and minimal consequences for his wall street handlers. I’m hoping for mid-thirties approval rating after jobs bill is compromised away into nothingness, so he can bow out gracefully, and we can get a real Dem candidate in time to battle zombie nation.
The MOTU would find a way to blame the orphans. Probably something like the lazy little tikes deserve it because they didn’t try hard enough to keep their parents alive so that they could just sponge off those of us who pay taxes.
As far as the MOTU’s are concerned, every crime of caste is a victimless crime.
In.re. Maher’s show last night. Why do supposedly intelligent and educated people, like Bill’s first guest, continue to use the term “decimated” in reference to massive destruction, when it actually means reduction by ten percent?
Bingo!
Yes, I quite agree. Nothing much new here except the ability to off-shore so many jobs and continue to get tax loopholes, incentives, cuts at an astonishing rate. But the US sheep turn their heads, look the other way and *defend* the poor, benighted rich folks & the mega-corporations.
The 100% bonus depreciation on capital equipment can actually be a job killer because it gives companies an incentive to replace workers with machinery.
As usual, the “Caver-in-Chief” did his preemptive caving by giving up the “all or nothing” even before the bill got to Congress. Way to go, Obummer!
Bill’s eloquence last night was best expressed near the end of the show when he admonished the crowd by saying he had to remind the audience that Obama “isn’t their boyfriend”.
Isn’t it about time for our economic system to be referred to as “mercantilism” rather than “capitalism”?
I’m unsure about that. A great many aren’t ready to hear, more just plain confused for good reason, mired in their particular ideologies or outright blissfully ignorant but we’ll never be a monolith and it’s hardly necessary we be so either.
I don’t think it is refusal as much as resistance. That might sound like a distinction without a difference, but what I mean is that word is spreading and at some point the elites are going to be facing an avalanche. It won’t matter that not all the snow fell.
I’m afraid that the elites will use their propaganda machine, the MSM, to effectively deflect the blame and induce the different “tribes” of the ignorati to attack each other rather than the plutocrats who probably have Blackwater/Xe on speed dial.,
The continued cuts to the Payroll Tax (which funds Social Security) is probably the only stimulus part of the jobs bill. Yet, it cynically undermines the political strength of the Social Security program by pushing the funding source into the larger Federal budget revenue stream. This is a set up to say at some future date: 1) Social Security lacks adequate funding, 2) Social Security now contributes “directly” to the larger Federal deficit.
The only reason they are taking from Social Security at this time that seems undeniable, is that there is no other source of stimulus which they could get the Republicans to agree to. But that is not a good enough reason to undermine the political validity and independence of a fully funded social insurance program which was and is not in distress.
Harry Reid is proof that invertebrates can stand erect without the necessity of a spine.
If ODINO’s plan had been implemented in it’s entirety it would knock 1% off the UE rolls. BFD.
Yeah, the 10% of the unemployed it would benefit would be gladdened and it would be a small boost to the economy – but WTF?!?
It’s not like he thought the Republicans were gonna jump in eagerly to pass this. And it’s not like there couldn’t be a plan out there to put tens of millions back to work. This is about Obama fighting like hell to put a couple of hundred thousand – or less – back to work, bashing Republican obstructionism and trumpeting his “Great Victory!”
The surprising thing to me is that so many lefties have bought in.
If Obama isn’t beaten in a primary or replaced on the ticket, the Democrats are dead.
Even is the Obamabots finally agreed, though, they would never admit it because it would be an admission that those of us who started calling this out all the way back to the transition team appointments were right all along. Obamabots are just about as amenable to facts and reason as the Teabaggers.
Years ago in Monty Python’s Michael Palin’s “Pole to Pole” trek series, he came across a guy in East Africa standing beside the one dirt road open along their north-south travel route. This entrepreneurial guy had a shovel and bucket of dirt. Travelers along this road would pay this guy a few cents to fill in potholes.
So, why can’t this work in America? /snark
We’ve got as much entrepreneurial spirit as that East African guy.
Unemployed people with shovels and buckets of dirt/hot tar could stand beside roads in and between neighborhoods (or alongside super-highways), people who’d fill in potholes for a buck. And similarly, they could stand next to bridges with welding equipment strapped to their backs, along with shovels and buckets of dirt/hot tar, offering to repair our nation’s bridges for a few bucks.
Aw, c’mon, where Republicans are concerned, you’ve first got to think small before you can think big, er, or maybe that’s just think small for a Republican.
Well said direct and to the point. :)
Maybe it will take a Rep. prez to wake everyone up. Just a guess on my part.
The msm is some people’s drug of choice.
Do you really think they can maintain their narratives with so many young and older people out of work?
I don’t think they have any more power than we give them. That some will never kick the habit, it won’t matter. The ones who slop up their lies, we don’t need them, though they’d surely help if we had them on our side, it’ll just mean a longer struggle.
It’s not just American Empire that is in decay, the narratives that lies built are also eroding.
It’s a seesaw.
Not dead, undead.
And, on a bigger scale, consider this very strong op-ed at truth-out – Obama Co-Opts the Labor Movement –
stating that Obama’s original $447b was paltry to begin with.
It is certainly true that FDR created the WPA and CCC by executive order. But, you cannot assume that the same legal structures are still in place, some 75 years later. So, you cannot assume that Obama can simply wave a pen and create new versions of the WPA and CCC. As if he actually would want to, anyway. And if he could, what funds would he use to pay for them? Talk about a ground for the Baggers to demand impeachment!
I did a quick google search and couldn’t readily find any info on this issue. So, I caution us all not to blithely throw around the idea that, in 2011, the president can create New Deal agencies – and fund them – at the stroke of a pen. I’d invite anyone to follow up on this legal issue if you want, but given Obama’s strong disinclination to go in this direction, I think it’s just a moot point and a waste of time to do more research.
That’s an excellent point and no people want you to believe the stale narratives more than the establishment Democratic Party. It’s all part of their “yes we can NOT” mantra. We can’t end the wars…authentically support labor…clean up the environment…enact single payer. Would the sky fall if they made an effort to disprove any of right-wing dogma?
We’ve got two parties: the party of Won’t and the party of Can’t.
Peel back the “Can’t” and there is a whole lot of “Won’t.”