President Obama jobs bill fails to pass Senate
President Obama and others expected Republicans to vote against the jobs bill but Obama says, 'we can't take 'no' for an answer.'
(Page 2 of 2)
Obama's plan would combine Social Security payroll tax cuts for workers and businesses and other tax relief totaling about $270 billion with $175 billion in new spending on roads, school repairs and other infrastructure, as well as unemployment assistance and help to local governments to avoid layoffs of teachers, firefighters and police officers.Skip to next paragraph
Subscribe Today to the Monitor
Obama said that the plan — more than half the size of his 2009 economic stimulus measure — would be an insurance policy against a double-dip recession and that continued economic intervention was essential given slower-than-hoped job growth.
"Right now, our economy needs a jolt," Obama said. "Right now."
Unlike the 2009 legislation, the current plan would be paid for with a 5.6 percent surcharge on income exceeding $1 million. That would be expected to raise about $450 billion over the coming decade.
That millionaires proposal would hit about 392,000 households, according to an analysis by the Tax Policy Center, a Washington think tank. In 2013, the first year the tax would take effect, those wealthy households would see their taxes increase by an average of $110,500, according to the analysis.
"Democrats' sole proposal is to keep doing what hasn't worked — along with a massive tax hike that we know won't create jobs," Senate Minority Leader Mitch McConnell said Tuesday, saying there are 1.5 million fewer jobs than when Obama's 2009 economic package became law. "Why on earth would you support an approach that we already know won't work?" McConnell said.
Just before the vote on Obama's jobs plan, the Senate passed legislation aimed at punishing China for keeping its currency undervalued against the dollar. Lower-valued currency helps Chinese exports at the expense, bill supporters say, of American jobs.
Next, both the House and Senate will turn Wednesday to approving trade agreements with Colombia, Panama and South Korea that could create tens of thousands of jobs, one of the few areas of agreement between Republicans and the administration on boosting the economy.
In coming weeks and months, Democrats promise further votes on jobs. But it remains to be seen how much of that effort will involve more campaign-stoked battles with Republicans and how much will include seeking common ground in hopes of passing legislation.
Leaders of the Republican-controlled House of Representatives have signaled they support tax cuts for small businesses and may be willing to accept an extension of cuts to the Social Security payroll tax. But stimulus-style spending is a nonstarter with House Republicans.
Tuesday's vote played out as disaffected crowds continued to occupy Wall Street, a square in Washington and parts of other cities around the country in protest of income inequality and related issues.
RECOMMENDED: Six boosts to Obama's reelection bid