American Jobs Act

Obama went before a captious Congress this Thursday, unveiling his plan to 'jolt' the economy. With the unemployment rate at 9.1 percent, Obama proposed an ambitious package that calls for dramatic cuts in payroll taxes that both taxpayers and business pay to fund the U.S  Social Security pension program. 

"The question is whether: in the face of an on-going national crisis...", Obama said in his proposal, "we can stop the  political circus and actually do something to help the economy." However, with a House of Representatives controlled by bitter Republicans, much opposition lies before Obama and his plans; moreover so, because it is a plan that could possibly help him get re-elected next year.

Unfortunately for the Republicans, "there should be nothing controversial about this piece of legislature - everything in here is the kind of proposal supported by both Democrats and Republicans", stated Obama. "You should pass this bill", encouraged Obama, under a frenzy of applause by Democrats and the silence of the Republicans.

The American Jobs Act is a $447 billion plan, of which approximately $240 billion accounts for the payroll tax cuts. "Everything is paid for", he said. In addition, the plan also includes:

• $105 billion for public works spending (improving school systems, roads and bridges)
• $49 billion to continue unemployment assistance to those who require benefits
• $35 billion for local governments to avoid layoffs of emergency personnel and teachers
• $8 billion to fund a $4,000 tax credit for businesses that hire workers who have been unemployed for more than six months

President Obama is expected to send the American Jobs Act to Congress Monday evening. However, Obama has received much scrutiny since Thursday as many believe the plan will only benefit the economy in the short term. Under the continuing rise of unemployment and the never ending "political circus" (as Obama stated so accurately) that plagues the White House, 80% of the American people believe the economy is heading in the wrong direction. Obama plans to layout another and more broader deficit plan on September 19. In coalescence with his current bill, the two plans will provide an estimated $2 trillion in deficit savings.