President urges $450 billion jobs proposal to ‘jolt’ economy in national address
Washington, DC.- Calling it an “urgent time for our country,” President Barack Obama asked Congress on Thursday night to “stop the political circus” and approve a nearly half-trillion-dollar plan to help the economy by cutting payroll taxes, raising taxes on the wealthy and rewarding companies that hire new workers.
“We continue to face an economic crisis that has left millions of our neighbors jobless and a political crisis that has made things worse,” Obama said in an address to a joint session of Congress.
To answer that crisis, Obama was proposing what he called the American Jobs Act, which he said would cut payroll taxes in half for working Americans and most small businesses; boost spending on public works, like roads, by $105 billion; and make permanent a temporary cut in the individual tax rate, which was reduced from 6.2 percent to 4.2 percent for this year only.
Obama calculated that the “typical working family” would get a $1,500 tax cut and that small companies with 50 employees would save $80,000, which he said would “provide a jolt to an economy that has stalled.”
Obama didn’t say how much the plan would cost, but advisers told NBC News it would run about $450 billion. Obama said he hopes to pay for it by closing corporate tax “loopholes” and by raising taxes on wealthier Americans.
“We need a tax code where everyone gets a fair shake and everybody pays their fair share,” he said. “And I believe the vast majority of wealthy Americans and CEOs are willing to do just that if it helps the economy grow and gets our fiscal house in order.”
Earlier this summer, Republicans forced a partial government shutdown over their refusal to raise any taxes at all, but Obama told them they should “pass this jobs plan right away,” because “the millions of Americans who are watching right now, they don’t care about politics. They have real-life concerns.”
Aides told NBC News that a key point of Obama’s address was that the measure simply wraps in a variety of deficit-reduction and jobs proposals that have drawn support in the past from both parties.
- Obama’s plan
Details of President Barack Obama’s economic proposals, which would take effect next year if passed by Congress:
• The payroll tax would be cut in half on the first $5 million of businesses’ payrolls. The measure would cover 98 percent of U.S. businesses.
• Payroll taxes for businesses firms that increase their payrolls by adding new workers or increasing average wages would be eliminated. (The benefit would be capped at the first $50 million in payroll increases.)
• Payroll taxes would be cut in half for 160 million workers.
• New tax credits of $5,600 to $9,600 to encourage the hiring of unemployed veterans.
• Renovation of 35,000 public schools with new science labs, Internet-ready classrooms and other upgrades.
• Increased spending on roads, rail, airports and waterways.
• A “Project Rebuild” program to people to work rehabilitating homes, businesses and communities.
• An extension of unemployment insurance for 5 million more Americans.
• A $4,000 tax credit for companies that hire long-term unemployed workers.
• A new government fund to expand job opportunities for low-income youth and adults.
Source: the White House
Obama made the same argument, telling lawmakers there was “nothing controversial about this piece of legislation.”
“Everything in here is the kind of proposal that’s been supported by both Democrats and Republicans,” he said.
Obama challenges Congress
Obama promised to release a detailed plan Monday.
In its latest budgetary outlook, the Congressional Budget Office estimated the federal deficits fiscal year 2011, which ends Sept. 30, at $1.28 trillion, down about $10 billion from last year. A bipartisan congressional debt committee met for a first time Thursday , assigned with finding $1.5 trillion in deficit reductions.
Administration officials had made it clear ahead of time that Obama would take a pugnacious approach to Republicans in Congress, latching on to what public opinion polls show is widespread dissatisfaction with Washington gridlock.
“Members of Congress, it is time for us to meet our responsibilities,” he said, complaining that “already, we’re seeing the same old press releases and tweets flying back and forth.”
“But know this,” he added: “The next election is 14 months away. And the people who sent us here — the people who hired us to work for them — they don’t have the luxury of waiting 14 months.”
And in case lawmakers missed the point, he called on Americans watching at home to remind them of it, loudly and long.
“Lift your voice and tell the people who are gathered here tonight that you want action now,” Obama said. “Tell Washington that doing nothing is not an option. Remind us that if we act as one nation and one people, we have it within our power to meet this challenge.”
The White House intends to take the fight directly to senior congressional Republicans, beginning with a speech Friday in the Richmond, Va., district of House Majority Leader Eric Cantor and following up Tuesday in Ohio, the state represented by House Speaker John Boehner.
Chuck Todd, Shawna Thomas, Mike Viqueira, Kristen Welker and Lauren Selsky of NBC News contributed to this report. This article was published at the NBC News.