Not only is the stock market riding major waves of instability, the job market has been sinking further with each passing month. The number of foreclosures and bankruptcy filings have hit all time highs in the last few years, and many people are focused on treading water as the government promises to help turn the economy around.
This week has been filled with the reports about President Obama’s American Job Act bill, which outlines ways to help boost the economy through the improvement of the job market. While many have anxiously awaited this news, others aren’t as optimistic the bill will be as successful as many are hoping.
Yea or Nay?
The plan is to encourage businesses to hire more employees and increase wages of current employees in exchange for certain tax credits. Businesses will be offered a $4000 tax credit or a 50 percent cut in payroll taxes next year for taking measures to hire unemployed words and increase the wages of current employees. Further tax cuts are expected to provide a $1,500 savings in taxes for the average family.
The plan will also create jobs by funneling money into specific industries. The President plans to fund $50 billion in infrastructure repairs, $30 billion to go towards school modernization and repair costs and $35 billion to help cities rehire and retain teachers and emergency medical staff. The bill will also end tax loopholes and increase taxes for the wealthy.
The bill is facing tough criticism from both political parties, the question being how the bill will be paid for. After a rough budget and debt debate just one month ago, both parties are worried about taking on new debt for the sake of attempting to boost the economy. However, President Obama insists, “Everything in here is the kind of proposal that’s been supported by both Democrats and Republicans — including many who sit here tonight. And everything in this bill will be paid for. Everything.”