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American Jobs Act Update - December 2nd

American Jobs Act Update – December 2, 2011

Last week, President Obama signed into law the Vow to Hire Heroes Act. This new law covers one of the many proposals put forth in the American Jobs Act.

 

American Jobs Act – background

Back in September, the President introduced the American Jobs Act, which had four primary areas of job creation:

  • Construction: Projects to improve basic infrastructure, roads, and schools will help employ thousands of workers in construction related fields.
  • Teachers: Aid to state and local governments will help keep teachers employed by using funds to prevent layoffs.
  • Veterans: Businesses will be given tax credits for hiring returning veterans.
  • Long-Term Unemployed: Employers will receive a $4,000 tax credit for hiring long-term unemployed workers. Note: They are defining “long-term” as six months or more.

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In addition, the American Jobs Act would allow for an extension of unemployment benefits through the end of 2012.

Over the last couple of months, the American Jobs Act has not received enough support on its own in order to be passed into law. Recently, specific components of the legislation, e.g. support for veterans, have been brought forth on an individual basis.

 

Vow to Hire Heroes Act

The legislislation enacted yesterday addressed the aspect of the American Jobs Act that addresses the 850,000 American veterans who are out of work. Specifically, it provides an incentive for businesses to hire veterans: A $2,400 tax credit for hiring veterans who have been out of work for four months, and a $5,600 tax credit for hiring veterans who have been out of work for six months or longer.

Of note, this bill received a unanimous vote of 422 to 0 in the House of Representatives.

While veterans represent fewer that 10% of Americans who are out of work, the passage of this bill may encourage Congress to consider further aspects of the American Jobs Act.

 

 

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Unemployment Extension Update - November 14th

Unemployment Extension Update – November 14, 2011

There are two separate unemployment extensions being discussed in Congress at the moment:

  • HR 3346 – The Emergency Unemployment Compensation Extension Act of 2011
  • HR 589 – The Emergency Unemployment Compensation Expansion Act of 2011

While they have similar names, the two pieces of legislation are quite different. We highlight the details, and how they might impact you, below.

 

HR 3346 – The Emergency Unemployment Compensation Extension Act of 2011

Federal unemployment benefits — the unemplyoment benefits you receive after the 26 weeks of Regular Benefits are exhausted — are set to expire on December 31, 2011. If this happens, as many as 2 million unemployed Americans will lose benefits in January 2012.

Last week, legislation was introduced that would extend these benefits through the end of 2012. As a reminder, these federally-funded unemployment benefits provide anywhere from 34 to 73 weeks of additional unemployment insurance after state-funded regular benefits run out.

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The Emergency Unemployment Compensation Extension Act has support in Congress, and will definitely receive more attention in the coming weeks. If history is a guide, given the extensions that passed in the last two years, it seems likely that this bill will pass, even if it happens after the December 31st deadline.

 

HR 589 – The Emergency Unemployment Compensation Expansion Act of 2011

As mentioned, the Federal unemployment benefits provide extensions resulting in a total of up to 99 weeks of unemployment insurance. That said, millions of American workers have exhausted the total number of available weeks.

The Emergency Unemployment Compensation Expansion Act, sponsored by Representative Barbara Lee, would
add an additional 14 weeks of benefits for those who have already received the maximum number of weeks of Federal unemployment benefits.

Also referred to as “Tier 5″, this expansion of benefits has been discussed over the last several months, but has yet to gain the necessary support in Congress. The most recent efforts made by Representative Barbara Lee and her co-sponsors have attempted to incorporate this legislation into the President’s jobs bill.

 

We will continue to keep you updated on both pieces of legislation, as well as The American Jobs Act.

The American Jobs Act -- $447 Billion

The American Jobs Act — $447 Billion

Four hundred forty-seven billion dollars.

Again, $447 billion. This is the amount of stimulus proposed as part of the American Jobs Act. To put it in perspective, this is equivalent to approximately $31,000 for every American who is out of work. Hopefully this will have a positive impact on the jobs environment and the economy.

What’s The Latest?

In his most recent radio address, President Obama encouraged Congress to “schedule a bote before the end of this month”. (“This month” being October 2011). Sounds good, right?

Well, as we have witnessed with almost every other piece of legislation brought before Congress recently, there are disagreements. These differing viewpoints will serve to delay a vote.

Essentially, Republicans are opposed to using tax increases to pay for the proposals, while Democrats are opposed to reductions in business regulations that Republicans would like to add to the bill.

The likely outcome is that certain provisions of the act will be voted upon, and passed, while aspects will continue to be debated in Congress during coming months.

How Will The American Jobs Act Create Jobs?

The proposals in the American Jobs Act will help job creation by providing incentives to employers. These incentives include the following:

  • Cutting payroll taxes for small businesses
  • Eliminating payroll taxes associated with hiring new workers
  • Expanding loans from the Small Business Administration

In addition, there are additional elements that encourage businesses to hire, such as the $4,000 tax credit for hiring a worker who has been out of work for six months or more, and even larger credits for hiring veterans.

Other Legislation

Also in the works is legislation concerning Free Trade Agreements. In conjunction with these bills, some lawmakers are requiring provisions that would require additional assistance for Americans who lose their jobs because of outsourcing. A proponent of this idea is Debbie Stabenow of Michigan, who has also been in support of a Tier 5 for 99ers.

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