GOP & Senate Rules Block Passage Of American Jobs Act

Oct 11: Because of unanimous Republican opposition and the Senate Rules regarding filibuster and the cloture procedure requiring 60 votes to proceed with threatened legislation, S.1660, the President's $447 billion American Jobs Act (AJA) [See WIMS 10/6/11], was defeated by a vote of 51-48, with Senator Coburn (R-OK) not voting. [Note: the official count was 50-49-1; however, Senator Majority Reid voted no on the cloture vote for procedural reasons]. The proposed package includes $245 billion in tax cuts; $140 billion in investments in infrastructure ($60 billion + $30 billion for school rehab) and local aid; and $62 billion in continued unemployment benefits. The proposal was to be paid for by the so-called millionaires surtax of 5.6% on incomes over $1 million.

 

    The President issued a statement saying, "Tonight, a majority of United States Senators voted to advance the American Jobs Act. But even though this bill contains the kind of proposals Republicans have supported in the past, their party obstructed the Senate from moving forward on this jobs bill. Tonight's vote is by no means the end of this fight. Independent economists have said that the American Jobs Act would grow the economy and lead to nearly two million jobs, which is why the majority of the American people support these bipartisan, common-sense proposals. And we will now work with Senator Reid to make sure that the individual proposals in this jobs bill get a vote as soon as possible. 

 

    "In the coming days, Members of Congress will have to take a stand on whether they believe we should put teachers, construction workers, police officers and firefighters back on the job. They'll get a vote on whether they believe we should cut taxes for small business owners and middle-class Americans, or whether we should protect tax breaks for millionaires and billionaires. With each vote, Members of Congress can either explain to their constituents why they're against common-sense, bipartisan proposals to create jobs, or they can listen to the overwhelming majority of American people who are crying out for action. Because with so many Americans out of work and so many families struggling, we can't take 'no' for an answer.  Ultimately, the American people won't take 'no' for an answer. It's time for Congress to meet their responsibility, put their party politics aside and take action on jobs right now."

 

    Senate Majority Leader Harry Reid (D-NV) issued a statement saying, "Republicans unanimously voted against our nation's economic health to advance their narrow political interests. Republicans blocked a bill that would put nearly two million Americans back to work. And they voted against this job-creating bill despite previously supporting many of the ideas it contains, such as tax cuts for the middle class and small businesses.

    "This balanced bill would have asked millionaires to pay their fair share to help get our economy get back on track. Americans want us to create jobs by cutting middle-class taxes, hiring veterans, and putting Americans back to work building roads, bridges and schools. Democrats will continue to advance these job-creating policies, and Republicans will have to explain to the American people why they oppose common-sense, bipartisan solutions for putting Americans back to work. With millions of Americans unemployed, and millions more struggling to make ends meet, we need to act now. I hope Republicans start listening to the American people."

    Senator Reid issued a separate, more lengthy statement today (October 12) and said in part, "Republican obstructionism has once against cost this nation millions of jobs. Last night, Republicans blocked the American Jobs Act, President Obama's plan to create 2 million jobs by giving tax cuts to business and middle-class families and investing in modern roads, bridges and schools. . .  Last night, a majority of the Senate voted to take up this bill. But Republicans won't put politics aside for a moment, even when the price of their stubbornness is struggling families and failing businesses. But I'll say it again: Democrats will not give up on creating jobs in America. We will introduce the American Jobs Act piece by piece. . ."

    U.S. Senate Republican Leader Mitch McConnell (R-KY) issued a statement on the Senate Floor on October 11, prior to the vote saying in part, ". . .later today, the Senate will vote on President Obama's second attempt to address our nation's ongoing jobs crisis with a stimulus bill. And Republicans welcome the opportunity. "If voting against another stimulus is the only way we can get Democrats in Washington to finally abandon this failed approach to job creation, then so be it. "The President's been calling for this vote for weeks; and in my view, we can't have it soon enough. . .

    ". . .by proposing a second stimulus, Democrats are showing the American people that they have no new ideas for dealing with our jobs crisis. Today's vote is conclusive proof that Democrats' sole proposal is to keep doing what hasn't worked — along with a massive tax hike that we know won't create jobs. So it's hard to overstate the importance of this vote. The President's first stimulus was a legislative and economic catastrophe.  Nearly three years after passage, we're still learning about its failures and abuses. We knew it was a bailout for states. We knew about all the absurd projects it funded. And over the past several weeks, we've also learned that the Obama administration was doing the very thing with solar companies that it once rightly criticized many others for doing on Wall Street: gambling with other people's money. But there's really only one thing you need to know about the first stimulus to oppose this second one, and it's this: $825 billion later, there are 1.5 million fewer jobs in this country than there were when the first stimulus was signed. . .

    "Democrats have designed this bill to fail -- they've designed their own bill to fail -- in the hopes that anyone who votes against it will look bad for opposing a bill they misleadingly refer to as a 'jobs bill.' . . . So I've got a better idea: how about we get this vote that Democrats already know won't pass behind us, so we can focus on real job-creating legislation that we actually know is worthy of passing with bipartisan support? . .

    "Over the next weeks and months, Republicans will continue to press our friends on the other side to work with us on legislation that will actually do something to create jobs in this country. Our first criterion for any proposal is that it would actually lead to more jobs, not fewer. I know that may seem crazy to some, but in our view it's not a jobs bill if it leads to fewer jobs. Our second criterion is that it doesn't add to the deficit. Republicans have been calling on Democrats to work with us on bipartisan job-creating bills for three years. . .

    "Democrats like to point out that the second stimulus we'll have a vote on today is 'paid for' with tax hikes and that it contains a tax cut. What they don't tell you, of course, is that the tax cut lasts for about 13 months while the tax hike lasts forever. They hide the fact that over the next five years it will actually increase the deficit by nearly $300 billion dollars next year alone. Another thing the Democrat supporters of this bill fail to mention is that about four out of five of the people who'd be hit with their new tax are businesses, including thousands of small businesses across the country — in other words, the very people Americans are relying on to create new jobs. . ."

    Senator McConnell issued a second statement today (October 12) indicating further, "Later today the Senate will show that Democrats and Republicans can, in fact, work together to make it easier for American businesses to create jobs. By passing free-trade agreements with Colombia, Panama, and South Korea, we will help the economy and we'll put the lie to the ridiculous Obama campaign claim that Republicans are somehow rooting against the economy. The fact of the matter is, if President Obama were willing to work with us on more bipartisan legislation like this, nobody would even be talking about a dysfunctional Congress. There wouldn't be any reason to. But, as we all know, that doesn't fit in with the President's reelection strategy. The White House has made it clear that the President is praying for gridlock, so he has somebody – besides himself -- to point the finger at next November. . ."

    Access the statement from the President (click here). Access the first statement from Sen.Reid (click here). Access the second statement from Sen.Reid (click here). Access the first statement from Sen. McConnell (click here). Access the second statement from Sen. McConnell (click here). Access the White House website on the AJA for complete details of the bill (click here). Access the roll call vote on the cloture motion (click here). Access legislative details for S.1660 which includes links to the Congressional Record and Floor remarks (click here).

 

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President Presses For Vote On The American Jobs Act

Oct 6: President Obama held a press conference on his $447 billion American Jobs Act (AJA) which he proposed after Labor Day [See WIMS 9/9/11]. The proposed package includes $245 billion in tax cuts; $140 billion in investments in infrastructure ($60 billion + $30 billion for school rehab) and local aid; and $62 billion in continued unemployment benefits.

 

    There has been no action on the proposal to date. However, the President announced that, "Next week, the Senate will vote on the American Jobs Act. And I think by now I've made my views pretty well known. Some of you are even keeping a tally of how many times I've talked about the American Jobs Act. And the reason I keep going around the country talking about this jobs bill is because people really need help right now. Our economy really needs a jolt right now.

 

    "This is not a game; this is not the time for the usual political gridlock. The problems Europe is having today could have a very real effect on our economy at a time when it's already fragile. But this jobs bill can help guard against another downturn if the situation in Europe gets any worse. It will boost economic growth; it will put people back to work. And by the way, this is not just my belief. This is what independent economists have said -- not politicians, not just people in my administration. Independent experts who do this for a living have said this jobs bill will have a significant effect for our economy and for middle-class families all across America. And what these independent experts have also said is that if we don't act, the opposite will be true. There will be fewer jobs; there will be weaker growth.

    So as we look towards next week, any senator out there who's thinking about voting against this jobs bill, when it comes up for a vote, needs to explain exactly why they would oppose something that we know would improve our economic situation at such an urgent time for our families and for our businesses. . .

    "The proposals in this bill are not just random investments to create make-work jobs. They are steps we have to take if we want to build an economy that lasts, if we want to be able to compete with other countries for jobs that restore a sense of security to middle-class families. And to do that, we've got to have the most educated workers. We have to have the best transportation and communications networks. We have to support innovative small businesses. We've got to support innovative manufacturers. . .

    ". . .this jobs bill is fully paid for by asking millionaires and billionaires to pay their fair share [i.e. 5% surcharge tax]. Some see this as class warfare. I see it as a simple choice: We can either keep taxes exactly as they are for millionaires and billionaires, with loopholes that lead them to have lower tax rates in some cases than plumbers and teachers, or we can put teachers and construction workers and veterans back on the job. . ."

    The President said, ". . .if Mr. McConnell chooses to vote against it, or if members of his caucus choose to vote against it, I promise you we're going to keep on going, and we will put forward maybe piece by piece each component of the bill. And each time they're going to have to explain why it is that they'd be opposed to putting teachers back in the classroom, or rebuilding our schools, or giving tax cuts to middle-class folks, and giving tax cuts to small businesses. . . [If] everybody on Capitol Hill is cynical and saying there's no way that the overall jobs bill passes in its current form, we're just going to keep on going at it. I want everybody to be clear. My intention is to insist that each part of this, I want an explanation as to why we shouldn't be doing it, each component part: putting people back to work rebuilding our roads, putting teachers back in the classroom, tax cuts for small businesses and middle-class families, tax breaks for our veterans. We will just keep on going at it and hammering away until something gets done. . ."

    U.S. Senate Republican Leader Mitch McConnell (R-KY) responded to the President in a statement on the Senate floor to what he called "the President's partisan stimulus and tax hike plan." Senator McConnell said, "What this week has shown, beyond any doubt, is that Democrats would rather talk about partisan legislation that they know won't pass, than about actually passing legislation we know would create jobs. "Two and a half years after the President signed his first stimulus there are 1.7 million fewer jobs in this country. And now, he wants to do it again. Why? Because Democrats think it makes for good politics. . .

    "So the real goal here for the Democrats, as far as I can tell, is entirely political — by arguing for a permanent tax hike to pay for a temporary stimulus, they essentially admitting they're not interested in creating jobs–because proposing a partisan tax hike 13 months before an election won't create a single job. So I would suggest that our friends on the other side put away the playbook and work with us instead. . .

    "How can anyone be expected to make plans when the next 'gotcha' tax hike to pay for this President's spending binge is always lurking around the corner? The President has said it's wrong to raise taxes in this weak economic environment. If he meant what he said, surely he'll join me in opposing this unwise tax hike Senate Democrats have proposed. . . "Republicans, along with some Democrats, have pro-growth solutions to help solve this crisis, but we will not stand for a permanent tax hike for a temporary stimulus that is largely a rehash of the same failed stimulus ideas this administration has already tried. . . "It's time Democrats move beyond the political rhetoric and for the President to stop campaigning. It's time for Democrats to reach across the aisle on bipartisan legislation that can actually pass."

    Access the complete text from the President's news conference and question (click here). Access details on the AJA from the White House (click here). Access the statement from Sen. McConnell (click here). [#All]

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The President's Plan For Economic Growth & Deficit Reduction

Sep 19: In follow-up to President Obama's $447 billion American Jobs Act (AJA) announced on September 8 [See WIMS 9/9/11], today he released his 80-page Plan for Economic Growth and Deficit Reduction. According to a summary released by the White House, "The health of our economy depends on what we do right now to create the conditions where businesses can hire and middle-class families can feel a basic measure of economic security. In the long run, our prosperity also depends on our ability to pay down the massive debt the federal government has accumulated over the past decade." As promised when he announced the AJA, the President said his initiatives would be "fully paid for" via additional deficit reductions which he will detail in a submission to the Joint Select Committee on Deficit Reduction (Supercommittee) within the next 10 days. The President sent his Plan to the Joint Committee "to jumpstart economic growth and job creation now – and to lay the foundation for it continue for years to come."

    In announcing his Plan the President said, "You know, last week, Speaker of the House John Boehner gave a speech about the economy [See WIMS 9/15/11].  And to his credit, he made the point that we can't afford the kind of politics that says it's "my way or the highway." I was encouraged by that. Here's the problem: In that same speech, he also came out against any plan to cut the deficit that includes any additional revenues whatsoever. He said -- I'm quoting him -- there is 'only one option.'  And that option and only option relies entirely on cuts. That means slashing education, surrendering the research necessary to keep America's technological edge in the 21st century, and allowing our critical public assets like highways and bridges and airports to get worse.  It would cripple our competiveness and our ability to win the jobs of the future. And it would also mean asking sacrifice of seniors and the middle class and the poor, while asking nothing of the wealthiest Americans and biggest corporations. So the Speaker says we can't have it 'my way or the highway,' and then basically says, my way -- or the highway. That's not smart. It's not right.  If we're going to meet our responsibilities, we have to do it together."

    The President continued, "This is not class warfare.  It's math. The money is going to have to come from someplace.  And if we're not willing to ask those who've done extraordinarily well to help America close the deficit and we are trying to reach that same target of $4 trillion, then the logic, the math says everybody else has to do a whole lot more:  We've got to put the entire burden on the middle class and the poor. We've got to scale back on the investments that have always helped our economy grow.  We've got to settle for second-rate roads and second-rate bridges and second-rate airports, and schools that are crumbling. That's unacceptable to me. That's unacceptable to the American people. And it will not happen on my watch.  I will not support -- I will not support -- any plan that puts all the burden for closing our deficit on ordinary Americans.  And I will veto any bill that changes benefits for those who rely on Medicare but does not raise serious revenues by asking the wealthiest Americans or biggest corporations to pay their fair share. We are not going to have a one-sided deal that hurts the folks who are most vulnerable. . ."

    According to the summary, "The President's Plan for Economic Growth and Deficit Reduction lives up to a simple idea: as a Nation, we can live within our means while still making the investments we need to prosper -- from a jobs bill that is needed right now to long-term investments in education, innovation, and infrastructure. It follows a balanced approach: asking everyone to do their part, so no one has to bear all the burden. And it says that everyone -- including millionaires and billionaires -- has to pay their fair share. Overall, it pays for the President's jobs bill and produces net savings of more than $3 trillion over the next decade, on top of the roughly $1 trillion in spending cuts that the President already signed into law in the Budget Control Act -- for a total savings of more than $4 trillion over the next decade. This would bring the country to a place, by 2017, where current spending is no longer adding to our debt, debt is falling as a share of the economy, and deficits are at a sustainable level."

    In summary form the President's Plan proposes to produce approximately $4.4 trillion in deficit reduction net the cost of the American Jobs Act.

• $1.2 trillion from the discretionary cuts enacted in the Budget Control Act.
• $580 billion in cuts and reforms to a wide range of mandatory programs;
• $1.1 trillion from the drawdown of troops in Afghanistan and transition from a military to a civilian-led mission in Iraq
• $1.5 trillion from tax reform
• $430 billion in additional interest savings

    To spur economic growth and job creation, the plan includes one-time investment and relief in the American Jobs Act.  That adds to the deficit in 2012 but is fully paid for over 10 years, and deficit reduction phases in starting in 2013, as the economy grows stronger. Deficit reduction is achieved in a balanced approach, with a spending cut to revenue ratio for the entire plan (including discretionary cuts) of 2 to 1.  

 

    On the revenue side of the President's proposal he calls for the Joint Committee to undertake comprehensive tax reform, and lays out five principles for it to follow: 1) lower tax rates; 2) cut wasteful loopholes and tax breaks; 3) reduce the deficit by $1.5 trillion; 4) boost job creation and growth; and 5) comport with the "Buffett Rule" that people making more than $1 million a year should not pay a smaller share of their income in taxes than middle-class families pay.

 

    The tax reform should draw on the specific proposals the President has put forward, together with elimination of additional inefficient tax breaks. If the Joint Committee is unable to undertake comprehensive tax reform, the President indicated he believes the discrete measures he has proposed should be enacted on a standalone basis. "Their enactment as a standalone package still would significantly improve the country's fiscal standing, represent an important step toward more fundamentally transforming our tax code, and serve as a strong foundation for economic growth and job creation." 

 

    To advance the debate, the President is offering a detailed set of specific tax loophole closers and measures to broaden the tax base that, together with the expiration of the high-income tax cuts, would be more than sufficient to hit the $1.5 trillion target. These include: Allowing the 2001 and 2003 tax cuts for upper income earners to expire ($866 billion); Limiting deductions and exclusions for those making more than $250,000 a year ($410 billion); and Closing loopholes and eliminating special interest tax breaks (approximately $300 billion).

 

    House Speaker John Boehner (R-OH) reacted immediately with a statement in response to the President's debt plan saying, "Pitting one group of Americans against another is not leadership. The Joint Select Committee is engaged in serious work to tackle a serious problem: the debt crisis that is making it harder to get our economy growing and create more American jobs.  Unfortunately, the President has not made a serious contribution to its work today. This administration's insistence on raising taxes on job creators and its reluctance to take the steps necessary to strengthen our entitlement programs are the reasons the president and I were not able to reach an agreement previously, and it is evident today that these barriers remain."

    Speaker Boehner included a note saying, "The President's proposal would raise taxes on both small businesses and on private capital, which is the essential ingredient for job creation in our economy. By declining to support structural improvements to strengthen our entitlement programs, the President has chosen to ignore the warnings about our debt crisis sent by the markets in August – leaving Americans exposed to the possibility of further downgrades that will further damage confidence and make it harder for our economy to grow and create jobs."

    Senate Minority Leader Mitch McConnell (R-KY) also issued an immediate response saying, "Veto threats, a massive tax hike, phantom savings, and punting on entitlement reform is not a recipe for economic or job growth -- or even meaningful deficit reduction. The good news is that the Joint Committee is taking this issue far more seriously than the White House."

    Senator McConnell appeared on Meet the Press Sunday and commented on the President's $447 billion AJA proposal and said, in part, "Right now, we've got -- we've thrown a big, wet blanket over the private sector economy. We've borrowed too much. We've spent too much. We're dramatically overregulating every aspect of the private sector in our country and now we're threatening to raise taxes on top of it. That's not going to get the economy moving. . . I mean, if you look at the stimulus bill, David, what did we get out of that? Turtle tunnels and Solyndra. Solyndra. Look, more money was lost on Solyndra than came to my state to fix roads and bridges out of the entire stimulus package last year. And now he's asking us to do it again. One of my favorite sayings here in Kentucky, out in the rural areas, is there's no education in the second kick of a mule. I mean, we've been there. We've done that. Now he's asking us to do it again. I'm trying to get him to go in a different direction."

     American Petroleum Institute (API) President and CEO Jack Gerard issued a statement saying, "President Obama's call for higher taxes on the U.S. oil and natural gas industry would undercut efforts to create jobs." He said, "The president's plan to raise taxes would destroy jobs and drive investment out of the United States. It's ironic that in his search for revenues, the president overlooks the revenues available from increased access to domestic oil and natural gas. Rather than raising taxes on a single industry, he could raise revenues, create jobs and strengthen our energy security. With one stroke of his pen, the president could allow the oil and natural gas industry to create a million new American jobs in just the next seven years.  This could also generate $127 billion in new revenue to the government. . ."

    John Engler, president of Business Roundtable (BRT) issued a statement saying, "With the current, anemic economic conditions, the unemployment rate will remain consistently high and tax receipts will remain low unless the focus shifts to long-term policies and economic growth. The uncertainty created by the threat of even higher taxes helps neither job creation nor growth. . . We remain convinced that a lower corporate rate and a competitive territorial system are essential elements of successful economic growth strategy."

    Access a fact sheet overview of the President's Plan (click here). Access a summary with links from Jack Lew is Director of the Office of Management and Budget (click here). Access the complete 80-page Plan (click here). Access the statement from Speaker Boehner (click here). Access Senator McConnell's statement (click here); and Meet the Press excerpts (click here). Access the statement from API (click here). Access the statement from BRT (click here). [#All]

Speaker Boehner Lays Out GOP Plan In Lieu Of President's Jobs Act

Sep 15: In a lengthy address to the Economic Club of Washington, House Speaker John Boehner (R-OH), basically offered an alternative to the President's American Jobs Act and called for bipartisan action to "Liberate America's Economy" from "the shackles of excessive regulation, higher taxes, and out-of-control spending that are stifling private-sector economic growth and job creation." The Speakers proposal comes as Republican opposition to the President's plan is growing [See WIMS 9/13/11] and some Democrats are also beginning the to question the proposals. Speaker Boehner proposed eliminating a number of regulations, revising the tax code and reducing spending. He also laid out an agenda for the Joint Select Committee of Congress now meeting under the Budget Control Act to identify $1.5 trillion in deficit reduction by Thanksgiving. He said tax increases are off the table and they should focus on principles for tax code revisions and reforms to Social Security, Medicare, and Medicaid. The Speaker's Plan directly confronts the President's Plan in many areas and generally assures that the Joint Committee and American Jobs Act are headed for serious political confrontation and deadlock.

 

    Speaker Boehner said, "We all know the economy is stalled, and it's been stalled. And it's not because the American people have lost their way. It's because their government has let them down. Last week the president put forth a new set of proposals. The House will consider them, as the American people expect. Some of the president's proposals offer opportunities for common ground. But let's be honest with ourselves. The president's proposals are a poor substitute for the pro-growth policies that are needed to remove barriers to job creation in America…the policies that are needed to put America back to work.

 

    "If we want job growth, we need to recognize who really creates jobs in America. It's the private-sector. This building is named in memory of President Ronald Reagan, who recognized that private sector job creators are the heart of our economy. They always have been. That was the America I was raised in. My father and grandfather were small businessmen. They ran a tavern in Cincinnati that my grandpa started in the 1930s. I worked in that tavern growing up. I ran a small business myself. I know what it takes to meet a payroll, hire workers, and create jobs in the private sector.

 

    "There's a fundamental misunderstanding of the economy that leads to a lot of bad decisions in Washington, D.C. The reality is that employers will hire if they have the right incentives, but the incentives have to outweigh the costs. Businesses are not going to hire someone for a $4000 tax credit if government mandates impose long-term costs on them that significantly exceed the temporary credit. In recent years, such mandates have been overwhelming. Private-sector job creators of all sizes have been pummeled by decisions made in Washington. They've been slammed by uncertainty from the constant threat of new taxes, out-of-control spending, and unnecessary regulation from a government that is always micromanaging, meddling, and manipulating. They've been hurt by a government that offers short-term gimmicks rather than fundamental reforms that will encourage long-term economic growth. . .

 

    "I can tell you the American people -- private-sector job creators in particular -- are rattled by what they've seen out of this town over the last few years. My worry is that for American job creators, all the uncertainty is turning to fear that this toxic environment for job creation is a permanent state. Job creators in America are essentially on strike. The problem is not confusion about the policies. . .the problem is the policies.

 

    "We need to liberate our economy from the shackles of Washington. Let our economy grow! . . . The first aspect of this threat is excessive regulation. . . We all know some regulations are needed. We have a responsibility under the Constitution to regulate interstate commerce. There are reasonable regulations that protect our children and help keep our environment clean. And then there are excessive regulations that unnecessarily increase costs for consumers and small businesses. Those excessive regulations are making it harder for our economy to create jobs."

   

    "At this moment, the Executive Branch has 219 new rules in the works that will cost our economy at least $100 million. That means under the current Washington agenda, our economy is poised to take a hit from the government of at least $100 million — 219 times. I think it's reasonable to ask: is it wise to be doing all of this right now? The current regulatory burden coming out of Washington far exceeds the federal government's constitutional mandate. And it's hurting job creation in our country at a time when we can't afford it.

 

    "Government's threat to job creation has two other components. One is the current tax code, which [] discourages investment and rewards special interests. It strikes me as odd that at a time when it's clear that the tax code needs to be fundamentally reformed, the first instinct out of Washington is to come up with a host of new tax credits that make the tax code more complex. The final aspect of the threat is the spending binge in Washington. It has created a massive debt crisis that poses a direct threat to our country's ability to create jobs and prosper. . ."

 

    "The Budget Control Act of 2011, signed into law last month, establishes a Joint Select Committee of Congress for the purpose of identifying $1.5 trillion in deficit reduction. . . The Joint Select Committee can tackle tax reform, and it should. It's probably not realistic to think the Joint Committee could rewrite the tax code by November 23. But it can certainly lay the groundwork by then for tax reform in the future that will enhance the environment for economic growth. . . Tax increases, however, are not a viable option for the Joint Committee. It's a very simple equation. Tax increases destroy jobs. And the Joint Committee is a jobs committee. Its mission is to reduce the deficit that is threatening job creation in our country. The Joint Committee can achieve real deficit reduction by reforming entitlements and taking real action to preserve and strengthen Social Security, Medicare, and Medicaid. . ."

 

    Access the full text of Speaker Boehner's address (click here). [#All]

 

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Republican Back Lash Growing To Obama's American Jobs Act

Sep 13: As President Obama traveled to Columbus, OH to push for his $447 billion American Jobs Act [See WIMS 9/9/11] and urged Congress to pass the Act with "No Games. No Politics. No Delays."; Republican opposition to the proposal seems to be building.

    At a press conference with Republican leaders, House Speaker John Boehner (R-OH) warned against using "permanent tax increases…to pay for temporary spending," as President Obama has proposed. Speaker Boehner said, "The House is going to continue to work to create a better environment for economic development and job growth in our country. We're going to consider legislation this week that would stop the government from telling companies where and where they cannot locate. And we'll also have the Congressional Budget Office looking at the President's proposal as we prepare for hearings in the House on his proposal. 

 

    "As a former small businessman myself, I can tell you that we've got a little different approach to creating jobs than our friends across the aisle. When you look at what we saw in the President's pay-fors yesterday, we see permanent tax increases put into effect in order to pay for temporary spending. I just don't think that's going to help our economy the way it could. And the fact is, is that having talked to thousands of people over the August recess, and thousands of employers over the same recess, what the American employers want is they want some certainty about what's happening in Washington, certainty about what the tax rates [are] going to be, certainty about what their health care costs and commitments are going to be and certainty about the regulatory onslaught that they're under. These are the kind of things that I think need to be addressed if we're going to create the kind of environment where employers will feel comfortable in adding more employees to their company."

 

    On the Senate side, Minority Leader Mitch McConnell (R-KY) said, ""Last week, President Obama came up to Capitol Hill to unveil a stimulus bill he's calling a jobs plan; and yesterday, the White House explained how they'd like to pay for it. The first thing to say about this plan is that it's now obvious why the President left out the specifics last week. Not only does it reveal the political nature of this bill, it also reinforces the growing perception that this administration isn't all that interested in economic policies that will actually work. But none of this is really news. Over the past few days, press reports have made it perfectly clear that this legislation is more of a reelection plan than a jobs plan. It's an open secret which Democrats all over Washington have been acknowledging to reporters since the moment the President unveiled it. . .

 

    "But the specifics we got yesterday only reinforce the impression that this was largely a political exercise. For one, they undermine the President's claim that it's a bipartisan proposal — because much of what he's proposing has already been rejected on a bipartisan basis. The half-trillion dollar tax hike the White House proposed yesterday will not only face a tough road in Congress among Republicans, but from Democrats too. . . The President can call this bill whatever he wants. But in reality, all he's really doing is just proposing a hodge-podge of retread ideas aimed at convincing people that a temporary fix is really permanent and that it will create permanent jobs. And then daring Republicans to vote against it. . ."

 

    Access the release from Speaker Boehner (click here). Access the statement from Senator McConnell (click here). Access information from the White House on the American Jobs Act including state by state impacts (click here). [#All]

 

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POTUS $447B American Jobs Act "The Right Thing To Do Right Now"

Sep 8: In an effort to bolster a near-recession economy and historic unemployment, President Obama laid the groundwork for what will either be a remarkable coming together of warring political parties; or, the permanent fracture that drives both sides further apart. Following the political circus of the debt ceiling debate, that has driven public approval ratings of Congress and the President to all time lows, the President announced his $447 billion American Jobs Act. The proposed package includes $245 billion in tax cuts; $140 billion in investments in infrastructure and local aid; and $62 billion in continued unemployment benefits.

 

    In sum, the plan includes tax cuts for small businesses and workers; investments in infrastructure and schools via a National Infrastructure Bank a new "Project Rebuild" program; assistance to keep teacher, cops and firefighters on the job; and, extension of unemployment insurance for 5 million workers and program reforms. And, importantly, the President promised that the initiative would be "fully paid for" via additional deficit reductions which he will detail in a submission to the Joint Select Committee on Deficit Reduction (Supercommittee) within the next 10 days.

 

    The President emphasized repeatedly the seriousness and urgency of what he called "the economic crisis that has left millions of our neighbors jobless, and a political crisis that's made things worse. . . The people of this country work hard to meet their responsibilities.  The question tonight is whether we'll meet ours. The question is whether, in the face of an ongoing national crisis, we can stop the political circus and actually do something to help the economy. . ."

 

    He said, "I know there's been a lot of skepticism about whether the politics of the moment will allow us to pass this jobs plan -- or any jobs plan. Already, we're seeing the same old press releases and tweets flying back and forth. Already, the media has proclaimed that it's impossible to bridge our differences. And maybe some of you have decided that those differences are so great that we can only resolve them at the ballot box. But know this: 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.  (Applause.)  Some of them are living week to week, paycheck to paycheck, even day to day. They need help, and they need it now. . . Regardless of the arguments we've had in the past, regardless of the arguments we will have in the future, this plan is the right thing to do right now.  You should pass it."

 

    In a direct affront to much of the Republican's Job Plan [See WIMS 9/8/11], the President said, "Now, I realize that some of you have a different theory on how to grow the economy. Some of you sincerely believe that the only solution to our economic challenges is to simply cut most government spending and eliminate most government regulations. . .  Well, I agree that we can't afford wasteful spending, and I'll work with you, with Congress, to root it out. . . [and] We should have no more regulation than the health, safety and security of the American people require. Every rule should meet that common-sense test. 

    "But what we can't do -- what I will not do -- is let this economic crisis be used as an excuse to wipe out the basic protections that Americans have counted on for decades. I reject the idea that we need to ask people to choose between their jobs and their safety. I reject the argument that says for the economy to grow, we have to roll back protections that ban hidden fees by credit card companies, or rules that keep our kids from being exposed to mercury, or laws that prevent the health insurance industry from shortchanging patients. I reject the idea that we have to strip away collective bargaining rights to compete in a global economy. We shouldn't be in a race to the bottom, where we try to offer the cheapest labor and the worst pollution standards.  America should be in a race to the top. And I believe we can win that race. In fact, this larger notion that the only thing we can do to restore prosperity is just dismantle government, refund everybody's money, and let everyone write their own rules, and tell everyone they're on their own -- that's not who we are. That's not the story of America. . ."

    Again, the President vowed to encourage public support and pressure in support of his plan and said, "I intend to take that message to every corner of this country. And I ask -- I ask every American who agrees to lift your voice: Tell the people who are gathered here tonight that you want action now.  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."

 

    As of early this morning, the White House has posted support comments on the President's plan from: Steve Case, Chairman & CEO of Revolution LLC, Chairman of the Startup America Partnership; Mark Gallogly Co-founder and Managing Principal, Centerbridge Partners; Randi Weingarten, President, American Federation of Teachers; Philadelphia Mayor Michael Nutter; Ken Chenault, Chairman and CEO, American Express; Jeff Immelt, Chairman and CEO, GE; Matthew Rose, Chairman and CEO, BNSF Railway; Richard D. Parsons, Chairman of Citigroup; Senators Harry Reid (D-NV), Kent Conrad (D-ND), Carl Levin (D-MI), and Daniel Inouye (D-HI); and Representatives Nancy Pelosi (D-CA) Xavier Becerra (D-CA), Frederica Wilson (D-FL). 

 

    Republican support for the President's plan appears in question. Even before the President's speech, Senate Minority Leader Mitch McConnell (R-KY) issued a release saying, ". . .in a two-party system like ours, it shouldn't be surprising that there would be two very different points of view about how to solve this particular crisis. What is surprising is the President's apparent determination to apply the same government-driven policies that have already been tried and failed. The definition of insanity, as Albert Einstein once famously put it, is to do the same thing over and over again and expect a different result. Frankly, I can't think of a better description of anyone who thinks the solution to this problem is another Stimulus. The first Stimulus didn't do it. Why would another one?. . . This isn't a jobs plan. It's a re-election plan. That's why Republicans will continue to press for policies that empower job creators, not Washington. . ." Senator McConnell did not issue a release following the speech.

 

    House Speaker John Boehner (R-OH) issued a statement after President Obama's address and said, "American families and small businesses are hurting, and they are looking for the White House and Congress to seek common ground and work together to help get our economy back on track. Republicans have laid out a blueprint for economic growth and job creation -- our Plan for America's Job Creators -- that focuses on one thing: removing government barriers to private-sector job growth. The proposals the President outlined tonight merit consideration. We hope he gives serious consideration to our ideas as well. It's my hope that we can work together to end the uncertainty facing families and small businesses, and create a better environment for long-term economic growth and private-sector job creation."

 

    House Majority Leader Eric Cantor (R-VA) and author of much of the Republican Jobs Plan issued a series of statements. Rep. Cantor said in part, "We are very focused on making sure that we can do something to provide incentives for small business people to get back in the game of job creation. That is what last night's speech was about. We have a plan to do that. I was glad to hear the Vice President say they are willing to compromise, because last night the President said it is an all or nothing proposal here for us to pick up and pass his bill. I can say there are a lot of things, whether it's the trade agreements, whether it's tax relief for small business people, whether it's the reform of unemployment compensation, that are in our plan as well. We could very easily take these items, put them across the floor, and I believe pass them. Hopefully we can work together and create an environment for jobs. . . on the need for infrastructure spending, we believe that states have monies right now, but Washington has tied up their ability to use those monies. We want to straighten out the system of how money is spent before we start spending more. We don't support the idea of creating a Fannie and Freddie for roads and bridges in an infrastructure bank. We believe that you can facilitate a better flow of funds to construction projects by fixing the current system."

 

    The President said he will ask the 12-member Super Committee, [See WIMS 8/10/11] that is required to report legislation by November 23, 2011, to reduce the deficit by another $1.5 trillion over 10 years to add the cost of the American Jobs Act to their considerations. He said he is willing to consider modest adjustments to health care programs like Medicare and Medicaid, and reforming the tax code in a way that asks the wealthiest Americans and biggest corporations to pay their fair share. He will details his proposals soon. A separate, September 9, White House communication from David Plouffe, Senior Advisor to the President indicated the Act would be "fully paid for by closing corporate tax loopholes and by asking the wealthiest Americans to pay their fair share."

 

    The Supercommittee is just now getting underway and includes the following 12 members. Senate Democrats: Patty Murray (D-WA, Co-Chair), Max Baucus (D-MT), and John Kerry (D-MA). Senate Republicans: Jon Kyl (R-AZ); Pat Toomey (R-PA), and Rob Portman (R-OH). House Republicans: Jeb Hensarling (R-TX, Co-Chair); Dave Camp (R-MI); and Fred Upton (R-MI). House Democrats: James Clyburn (D-SC); Democratic Caucus Vice Chair Xavier Becerra (D-CA) and Budget Committee Ranking Member Chris Van Hollen (D-MD).

 

    Access the full text of the President's speech and link to an enhanced video that includes charts, graphs and summary information (click here). Access an overview fact sheet from the White House (click here). Access a additional fact sheet on the American Jobs Act (click here). Access another 3-page summary of the Act (click here). Access links to various supporting comments on the White House website (click here). Access extensive follow-up on the Jobs Act including support and schedule of activities on the White House Blog (click here). Access a release from Senator McConnell (click here). Access a release from Speaker Boehner (click here). Access a series of statements from Rep. Cantor (click here). [#All]

House GOP & Romney Job Plans In Advance Of The President

Sep 8: As the country prepares to hear the President's job's plan this evening it's important to review the House Republican jobs plan that was detailed further on August 29, in a memo to House Republicans from House Majority Leader Eric Cantor (R-VA). Representative Cantor indicated, ". . .we released The House Republican Plan for America's Job Creators earlier this year. While the debt crisis has demanded much of our attention, our new majority has passed over a dozen pro-growth measures to address the equally troubling jobs crisis, such as the Energy Tax Prevention Act and the Putting the Gulf of Mexico Back to Work Act. Aside from repeal of the 1099 reporting requirement in ObamaCare, however, each House Republican jobs bill now sits dormant in the Democrat-controlled Senate.

 

    The Cantor memo indicates, "By pursuing a steady repeal of job-destroying regulations, we can help lift the cloud of uncertainty hanging over small and large employers alike, empowering them to hire more workers. Our regulatory relief agenda will include repeal of specific regulations, as well as fundamental and structural reform of the rule-making system through legislation like the REINS Act, the Regulatory Flexibility Improvements Act, and reform of the Administrative Procedures Act (all three bills are expected on the floor in late November and early December)." The memo provides a listing of "the 10 most harmful job-destroying regulations" as well as a "selective calendar for their repeal." Among the 10 regulations targeted, 7 are environmentally related. The following is excerpted from the Cantor memo regarding the environmental regulations including:

• Utility MACT and CSAPR (Week of September 19): "The Administration's new maximum achievable control technology (MACT) standards and cross-state air pollution rule (CSAPR) for utility plants will affect electricity prices for nearly all American consumers. In total, 1,000 power plants are expected to be affected. The result for middle class Americans? Annual electricity bill increases in many parts of the country of anywhere from 12 to 24 percent. H.R. 2401, the Transparency in Regulatory Analysis of Impacts on the Nation (TRAIN) Act, sponsored by Rep. John Sullivan (OK), would require a cumulative economic analysis for specific EPA rules, and specifically delay the final date for both the utility MACT and CSAPR rules until the full impact of the Obama Administration's regulatory agenda has been studied."
• Boiler MACT (Week of October 3): "From hospitals to factories to colleges, thousands of major American employers use boilers that will be impacted by the EPA's new 'boiler MACT' rules. These new stringent rules will impose billions of dollars in capital and compliance costs, increase the cost of many goods and services, and put over 200,000 jobs at risk. The American forest and paper industry, for example, will see an additional burden of at least $5-7 billion. H.R. 2250, the EPA Regulatory Relief Act, sponsored by Rep. Morgan Griffith (VA), would provide a legislative stay of four interrelated rules issued by the EPA in March of this year. The legislation would also provide the EPA with at least 15 months to re-propose and finalize new, achievable rules that do not destroy jobs, and provide employers with an extended compliance period."
• Cement MACT (Week of October 3): "The 'cement MACT' and two related rules are expected to affect approximately 100 cement plants in America, setting exceedingly stringent requirements that will be cost-prohibitive or technically infeasible to achieve. Increased costs and regulatory uncertainty for the American cement industry—the foundation of nearly all infrastructure projects—are likely to offshore thousands of American jobs. Ragland, Alabama, for example, recently saw the suspension of a $350 million cement production facility, putting 1,500 construction jobs on hold and additional permanent and high-paying plant operation jobs in limbo. H.R. 2681, the Cement Sector Regulatory Relief Act, sponsored by Rep. John Sullivan (OK), would provide a legislative stay of these three rules and provide EPA with at least 15 months to re-propose and finalize new, achievable rules that do not destroy jobs, and provide employers with an extended compliance period."
• Coal Ash (October/November): "These anti-infrastructure regulations, commonly referred to as the "coal ash" rules, will cost hundreds of billions of dollars, affecting everything from concrete production to building products like wall board. The result is an estimated loss of well over 100,000 jobs. H.R. 2273, the Coals Residuals Reuse and Management Act, sponsored by Rep. David McKinley (WV), would create an enforceable minimum standard for the regulation of coal ash by the states, allowing their use in a safe manner that protects jobs."
• Ozone Rule (Winter): This effective ban or restriction on construction and industrial growth for much of America is possibly the most harmful of all the currently anticipated Obama Administration regulations. Consequences would reach far across the U.S. economy, resulting in an estimated cost of $1 trillion or more over a decade and millions of jobs. Unlike her predecessors, EPA Administrator Lisa Jackson is pushing for a premature readjustment of the current ozone standards, dramatically increasing the number of "nonattainment" areas. The new readjustment rule is expected early this fall and I expect the Energy and Commerce Committee to act swiftly to prevent its implementation, in order to protect American jobs." [Note: On September 2, President Obama announced his decision to delay changes to the ground-level ozone standards until the regular review scheduled for 2013, See WIMS 9/6/11].
• Farm Dust (Winter): "The EPA is expected to issue revised standards for particulate matter (PM) in the near future. Any downward revision to PM standards will significantly impact economic growth and jobs for businesses and people throughout rural America that create dust, like the farmer in Atkinson, Illinois, who raised his concerns with the President at a town hall earlier this month. While the President may have sent him on a bureaucratic wild goose chase, the House will act promptly on H.R. 1633, the Farm Dust Regulation Prevention Act, sponsored by Rep. Kristi Noem (SD). H.R. 1633 would protect American farmers and jobs by establishing a one year prohibition against revising any national ambient air quality standard applicable to coarse PM and limiting federal regulation of dust where it is already regulated under state and local laws."
• Greenhouse Gas (Winter): "The EPA's upcoming greenhouse gas new source performance standards (NSPS) will affect new and existing oil, natural gas, and coal-fired power plants, as well as oil refineries, nationwide. While the impact on the economy and jobs are likely to be severe, the rules are quickly moving forward, once again revealing the Administration's disregard for the consequences of their policies on our jobs crisis. Again, I expect Chairman Upton and the Energy and Commerce Committee to move swiftly in the coming months to protect American jobs and consumers."

    Meanwhile, on September 6, Republican Presidential candidate Mitt Romney released his detailed 160-page book titled "Believe in America: Mitt Romney's Plan for Jobs and Economic Growth," which includes more than fifty policy proposals across seven different areas: Taxes, Regulation, Trade, Energy, Labor, Human Capital, and Fiscal Policy. Romney's plan is the first detailed plan to be released by the various Republican Presidential candidates. According to a release from Romney, the specific proposals include fundamental tax reform, a significant overhaul of the Federal regulatory system, innovative new approaches for opening foreign markets to American exports and for confronting China over its unfair trade practices, an aggressive commitment to developing America's energy resources, and a dramatically reduced role in the economy for the federal government.

 

    On September 6, House Speaker John Boehner (R-OH) and Majority Leader Cantor sent a letter to President Obama highlighting several House-passed jobs bills which they say "remain stalled in the Democrat-led Senate and outlining potential opportunities for Congress and the White House to work together this fall on jobs." In the letter the House Republican leaders indicate, "We understand that many in your party want to build on the $800 billion stimulus bill that you proposed (and the Democratic Congress passed) as the best method for improving the economy. As you know, we argued at the time that a large, deficit-financed, government spending bill was not the best way to improve our economic situation or create sustainable growth in employment. Given the current unemployment and deficit numbers, we believe our concerns have been validated. . .

 

    "Last week we also announced a legislative calendar for the fall with a heavy focus on repeal of excessive, job-destroying regulations and the pursuit of pro-growth tax relief.  . . Our hope is that both parties can work together in the coming weeks to reduce excessive regulation that is hampering job growth in our country. To facilitate such efforts, we hope that prior to your address to a Joint Session, you will disclose the cost estimates for the remaining 212 new regulatory actions planned by your administration. . ."

 

    Tonight at 7:00 PM EDT, President Obama will lay out his plan for creating American jobs and growing our economy in a speech before a special joint session of Congress. Senior Advisor David Plouffe recorded a short video to preview the speech and highlighted some key points (see the link below). Immediately following the President's speech, the White House will offer a live panel where policy experts from the White House will answer questions.

 

    Access the Cantor memo (click here). Access legislative details for H.R.2401 (click here). Access legislative details for H.R.2250 (click here). Access legislative details for H.R.2681 (click here). Access legislative details for H.R.2273 (click here). Access legislative details for H.R.1633 (click here). Access a 1-page summary of the House Republican jobs plan (click here). Access the complete 10-page House Republican jobs plan (click here). Access the Republican JobsBill legislative progress tracker (click here). Access a release from the Romney campaign and link to the complete plan (click here). Access the lengthy letter from House GOP leaders to the President (click here). Access the Plouffe video preview of the President's speech (click here). Access more information on the White House follow-up Q&A to the President's speech (click here). [#All]

 

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