5 Ways the Job Plan Will Impact YOU

How’s your resume looking? I hope you’ve been keeping it updated and tweaking it lately or taken it to a resume service to get it into shape, because the American Jobs Act that President Obama is backing could help give the U.S. economy a much-needed boost.
Obama’s plan could help the 9% of unemployed Americans (16% counting those who have given up the job search as well as those with only part-time jobs) find adequate employment. The first economic stimulus package, which pumped $780 billion into the American economy, helped the economy partially recover and helped create nearly 3 million jobs. It wasn’t enough, though, so this time the President is looking out for the American people by backing an act that would create around $250 billion in tax cuts, hiring incentives for businesses, $60 billion in unemployment benefits, and increased spending on infrastructure and education.
Payroll Taxes
The Act will reduce payroll taxes by 50% for the first $5 million paid by businesses. Because 98% of businesses pay $5 million or less in payroll taxes, this means a 50% break for nearly all U.S. businesses, which will (hopefully) free up some money on payroll to hire more workers. Additionally, the current plan will eliminate payroll taxes for additional workers and increased wages, up to $50 million in payroll increases, freeing up even more money that businesses will hopefully use to increase the workforce.
Hiring Incentives
The Jobs Act includes incentives for businesses to hire veterans, called “Returning Heroes” tax credits. They will provide $5,600 to $9,600 in tax credits for hiring unemployed veterans, which will provide two huge benefits: 1) Encouraging businesses to provide jobs for our nation’s heroes, hopefully helping them make the adjustment to civilian life easier by reducing job hunting stress and 2) Pumping even more money into businesses to expand the workforce.
Unemployment Benefits
Five million U.S. citizens will be able to retain their unemployment benefits while looking for full-time work due to the Act. Also included are reforms designed to prevent layoffs, including work sharing, providing temporary work and on-the-job training and programs designed to spur entrepreneurship. Additionally, businesses who hire long-term unemployed workers will receive tax credits and businesses will be barred from discriminating against unemployed workers. That last point is a big one, because many businesses assume that a long period of unemployment means that a job candidate has a negative attitude or work ethic, while in fact the unemployment may merely be due to the struggling economy and lack of jobs.
Infrastructure Improvement
“Project Rebuild” will send money toward repairing homes and commercial buildings as well as whole communities. Other parts of the Act will invest in improving roads, rail systems, airports and waterways. All of these major building projects have the potential to employ millions of American citizens, increasing spending and decreasing unemployment. Additionally, the creation of a national infrastructure bank, which will fund promising infrastructure projects, could provide a much needed boost to infrastructure development, resulting in more clean energy projects that could result in more job creation in the long term.
Education and Civil Service Spending
The Act will help keep 280,000 educators from losing their jobs, as well as an unknown number of police officers and firefighters. With our education system already suffering from steep budget cuts, this stimulus could keep it from the brink of disaster. Preserving the jobs of police officers and firefighters may seem like an easy decision, but many departments are suffering from the same woes as the education system and are trying to continue providing invaluable services with reduced budgets. This Act could help keep them secure until the economy is able to recover further.
While the economy continues to grow quickly in certain sectors—the Tech sector being a notable standout, where Apple and companies rolling out new cloud computing technology are still thriving—the economy as a whole continues to stutter. Many who default to a belief in Keynesian economics believe that the government must be ‘the-spender-of-the-last-resort.’ And indeed this may be the case. Only time will tell.




