In my email the other day I received a link to a plan, that is paid for, that will create 4.6 million jobs.
I will attempt to give a review of it . I highly suggest that you go to the link and read the whole proposal yourselves. It is quite progressive in it’s implantation of both distributing jobs and taxation. It was developed by a group called “Economic Policy Institute.” The name of their plan is called “American Jobs Plan.”
The Safety Net
The first component of the American Jobs Plan is to strengthen the safety net—including unemployment compensation, COBRA health coverage, and nutrition assistance.
These supports are critical to helping families make ends meet while they search for new work. But they are also highly effective at increasing overall demand in the economy, and therefore at creating new jobs.
As the first components of the American Jobs Plan, EPI recommends continued extension of unemployment insurance and subsidized COBRA, as well as an increase in the COBRA subsidy to 80% from the current 65%. Congress should also examine ways to strengthen nutrition assistance.
Fiscal Relief for State and Local Governments
The second component of the American Jobs Plan is to provide additional fiscal relief to state and local governments. The recession has led to much lower tax revenues at the state and local levels and to higher spending for state safety net programs.
We recommend that the federal government extend the state and local budget relief provided in the Recovery Act by $150 billion over the next year and a half, through state fiscal year 2011. The additional relief will save between one million and 1.4 million jobs.
Investments in Transportation and Schools
The third component of the American Jobs Plan is increased investment in transportation infrastructure and the repair and modernization of the nation’s school buildings and facilities.
In addition to increased investments in transportation infrastructure, we recommend the allocation of $30 billion to school districts for school modernization according to the Elementary and Secondary Education Act’s Title I formula to ensure that the money reaches every school district quickly and efficiently.
Public Service Jobs
The fourth component of the American Jobs Plan is to create jobs directly by putting unemployed people to work in jobs that will benefit their communities. If the private sector can’t put people back to work, then the public sector must. We know from those experiences that a large-scale jobs program can be geared up quickly and help put a million of our citizens back to work in jobs that will improve their communities and contribute to shared prosperity.
We recommend that the federal government spend $40 billion per year over the next three years to directly create jobs that put unemployed Americans back to work serving their communities.
Job Creation Tax Credit
The fifth and final component of the American Jobs Plan is a tax credit for new job creation deployed over the next two years. According to our estimates, a tax credit for firms equal to 15% of expanded payroll costs would lead them to hire an additional 2.8 million employees next year.
To encourage employers to expand their workforces, we recommend a refundable tax credit, worth 15% of expanded payroll in the first year and 10% in the second, for businesses, nonprofits, and state and local governments that enlarge their payrolls through hiring, adding hours, or increasing wages.
Paying for the American Jobs Plan with a Financial Transactions Tax
(This is my Favorite Part)
Enactment of the American Jobs Plan would have immediate benefits for employment, but as long as the impact of the recession continues to weigh on the job market next year and through 2011, government economic policy must remain expansionary. In years three through 10, all of this spending could be recouped through a financial transactions tax.
We recommend a modest 0.5% tax on financial transactions to pay for the American Jobs Plan. The tax would take effect three years after the implementation of the plan, and at year 10 it would
cover the plan’s entire cost, making it deficit-neutral.
There is a lot here and I apologize both for its length
I strongly recommend that you read through this and support the policy. I have already sent links to various people that I do hope that they will read it.
Please read. http://www.epi.org/index.php/american_jobs/american_jobs_planhttp://epi.3cdn.net/10947c79c16a93247f_qsm6isvxe.pdf
Now we can all have an answer when the Rethug says “We need jobs, What is the plan. Whaaa”