The people of America understand that the economic crisis and the deep recession are not an overnight products and cannot be solved overnight either. The economic security of the great American middle class has been under attack for decades. President Obama believes that America needs to do more than just recover from this economic crisis – “We need to rebuild the economy the American way, based on balance, fairness, and the same set of rules for everyone from Wall Street to Main Street” he said in his recent speech “We can work together to create the jobs of the future by helping small business entrepreneurs, by investing in education, and by making things the world buys” he added. The President understands that to restore an American economy that’s built to last they cannot afford to outsource American jobs anymore and encourage reckless financial deals that put middle class security at risk.
The President unveiled the American Jobs Act, to create more jobs – most of which is made up of ideas that have been supported by both, the Democrats and the Republicans, and ideally the Congress should pass it right away to get the economy moving. The American Jobs Act has a simple purpose: put more and more people back on jobs and put more money in the pockets of Americans who are working. And this would happen without adding a dime to the deficit.
Apart from the 3.1% payroll tax cut for all firms, the President’s plan also provides a direct incentive to encourage firms to hire additional employees or raise wages for ones who are currently employed with them. The plan would refund entire amount of payroll taxes paid on added workers or wage increases for current workers above the level of last year’s payroll. To focus the benefit of this tax cut on small businesses, payroll tax relief is to be capped at applying to $50 million in new wages. This tax holiday would be amplified by targeted tax cuts for hiring the long-term unemployed as well as veterans who have been out of work for six months or more.
The American Jobs Act has five key components:
- tax Cuts to Help America’s Small Businesses Hire and Grow.
- putting Workers Back on the Job While Rebuilding and Modernizing America.
- pathways Back to Work for Americans Looking for Jobs.
- money in the Pockets of Every American Worker and Family.
- fully Paid for as Part of the President’s Long-Term Deficit Reduction Plan.