President Obama has put forth his latest proposal for creating jobs. The $447 "American Jobs Act" includes a mix of tax cuts for employers and employees, job retraining incentives and spending on infrastructure as well as funds for local governments to retain police and fire fighters.
Of particular interest to local officials the President has proposed:
1. $50 billion for roads, rails and airports including resources for the TIGER and TIFIA programs.
2. $10 billion to capitalize a National Infrastructure Bank
3. $15 billion for rehabilitating vacant and foreclosed homes and businesses.
4. $5 billion to support the hiring and retention of public safety and first responder personnel.
For the specific impact on Michigan, see this document.
The President proposes to pay for the program through a series of tax hikes on the wealthy and businesses including raising $400 billion by limiting itemized deductions for individuals who make more than $200,000 a year and families that make more than $250,000.
The administration also is proposing a tax on the income investment fund managers make ($18 billion), eliminating tax breaks for the oil-and-gas sector ($40 billion), and eliminating the way corporate jets depreciate ($3 billion). deficit reduction.
Comments from leading Congressional Republicans sounded cooperative but cool making this a tough sell over the coming days and weeks of debate.
Arnold Weinfeld is Director of Strategic Initiatives and Federal Affairs for the Michigan Municipal League. He can be reached at 517-908-0304 or by e-mail.
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