In his latest attempt to energize the economy, President Barack Obama detailed a $447 billion plan called the American Jobs Act in a congressional address Thursday.
Instead of providing money to businesses to spur growth, the American Jobs Act is poised to cut taxes for businesses that either employ new workers or increase wages. The act particularly targets small businesses by halving taxes on businesses’ payrolls up to $5 million.
According to the act, the cap of $5 million spent on payroll encompasses about 98 percent of businesses in the country. And if a business hires new workers or increases current worker wages, the business will not pay payroll taxes up to the first $50 million spent.
These tax reforms for businesses will cost the government $65 billion, according to the White House’s American Jobs Act overview.
The act particularly provides for veterans with a program called the “Returning Heroes Tax disabilities.”
Also in the act are a bipartisan National Infrastructure Bank and Project Rebuild — two initiatives to create jobs through “modernizing” transit systems, such as roads and airports, and renovating rundown schools.
Obama set aside an investment of $25 billion for school infrastructure, which he projects will “modernize at least 35,000 public schools” nationwide. An extra $5 billion was allotted to community college modernization as well.
Thirty billion dollars will be set aside for states to prevent teacher layoffs.
Another $50 billion will be dedicated to fixing transit systems in the U.S., which will create jobs.
Because of the restoration-based initiatives, Associate Director for Employment Services Trey Truitt believes the plan will mostly benefit students involved in construction and engineering.
“Anything that energizes hiring will benefit our students,” he said.
Truitt also pointed out that veterans leaving the University could see more personal opportunities because of the tax credits for businesses that hire them.
While the number of veteran students at the University is uncertain, approximately 500 students receive veterans benefits, according to the Registrar’s Office.
Robert Newman, economics professor and department chair, was keen to point out “the government doesn’t create meager.”
Adding to future expenses are the means by which Obama plans to pay for the $447 billion plan.
The majority of the act’s hefty price will be paid with a series of tax reforms.
One reform will limit tax deductions for individuals making $200,000 or more annually and families making $250,000 or more. This reform is slated to raise approximately $400 billion over the next 10 years.
Obama also estimates another $40 billion in revenue through ending tax subsidies for “certain” oil companies.
Tax breaks for anyone owning a corporate jet will be eliminated as well, bringing in a projected $3 billion.
If the president’s approximations are accurate, the reforms should raise $461 billion to counteract the $447 billion American Jobs Act.
The act also seeks to extend unemployment insurance. According to a recent news release by the Louisiana Workforce Commission, the number of new claims for unemployment insurance in Louisiana increased this past week from 3,648 to 3,878, and a recent Census report stated the U.S.’s poverty rate in 2010 reached an all-time high of 15.1 percent.
A Congressional Connection Poll was conducted from Sept. 8-11 by Princeton Survey Research Associates International to gauge the American people’s responses to Obama’s proposals.
The survey showed 75 percent of those polled approved of his plan to provide tax cuts for hiring businesses. Another 70 percent agreed with his provision to states to prevent teacher and public worker layoffs.
While the main facets of the American Jobs Act are meeting general approval, Republican policies to fix the deficit also hold sway with the public.
Approximately 67 percent approved of a balanced budget amendment for the federal government, and 52 percent approved of cutting corporate tax rates.
 
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Contact Clayton Crockett at [email protected]