Obama pitches jobs plan
President Obama addressed a joint session of Congress last night to outline his plan for $447 billion in tax cuts and government spending aimed at creating jobs and strengthening the economy. Maine's congressional delegation's response to the plan was mixed.
Obama repeatedly urged Congress to pass right away the American Jobs Act, which would extend the current reduced payroll tax of 4.2% and in 2012 further reduce it to 3.1%, saving the average family $1,500 a year, according to The Washington Post. Payroll taxes companies pay would be reduced from 6.2% to 3.1% in 2012. Employers who hire veterans or people who have been unemployed for more than six months would also get tax credits of up to $4,000. Unemployment benefits would be extended, allowing those in job training to receive benefits, at a cost of $62 billion. Obama also proposed $40 billion in aid to prevent teacher, police officer and firefighter layoffs, and another $140 billion in government spending would mainly fund transportation and education projects.
Obama's proposal to extend payroll tax cuts and reward companies for hiring veterans received high marks from Maine's senators. However, Sen. Susan Collins said the president did not make clear how the plan would be paid for, and said it did not address the uncertainty facing business owners. She said she plans to introduce legislation that would impose a one-year moratorium on significant new government rules from going into effect that would hurt "America's job creators," according to a release. Sen. Olympia Snowe said she supported funding for highway and bridge construction, but urged against any plan that would raise taxes for small businesses. "Too many onerous regulations, too few incentives, and a tax code too complex are all suppressing the entrepreneurial spirit intrinsic to our nation," she said in a press release.
U.S. Rep. Mike Michaud agreed that bipartisan support was necessary to improve the country's economy, but said he was "disappointed' with Obama's trade policies, which he called "old Washington ways," and spoke against the passage of more free trade agreements. U.S. Rep. Chellie Pingree called it a "concrete jobs plan" and emphasized the need for consensus to get it passed quickly.
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