White House Faces Political Headaches Over Jobs Ahead of Labor Day

Share
Copy

One of the ideas in this broader package is likely a payroll tax holiday. This spending initiative is simply a newer version of a tax break signed into law in March as part of the hiring incentives to Restore Employment Act. It currently offers businesses tax credits to hire workers who have been unemployed for eight weeks or longer. The new version would extend the time period businesses have to use the credits and provide a break on payroll taxes that would be shared by employers and their workers -- temporarily, at least.

The president also undoubtedly will call on Congress to pass a bill giving "tax and loan breaks to small business," as he described it in his remarks in the Rose Garden Friday, and to extend a tax credit for businesses that spend money on "research and development."

There's also a big question: Will the president continue to press for the expiration of the "Bush tax cuts" for individuals making more than $250,000 a year?

Republicans feel these tax cuts should not be allowed to expire because such wealthy individuals fuel consumption spending, hiring and investment.

Democrats currently are divided on the issue. On one side of the issue, President Obama argues that in such an unstable economic environment the wealthy are unlikely to spend the extra funds. On the other side of the issue, some Democrats are pushing for the cuts to be extended at least one more year in the hope that they can spur some growth and help the economy mend.

"At the end of the day, we've got an election in November," Swonk said. "When there's an election in November, you can bet nobody's going to be raising taxes and everybody's going to be doing all they can to lower taxes. In such a fragile economic situation, nobody wants to go to the polls looking like they've raised taxes or defending an increase in taxes at this stage of the game."

-- This embed didnt make it to copy for story id = 11557806. -- This embed didnt make it to copy for story id = 11557806. -- This embed didnt make it to copy for story id = 11557806. -- This embed didnt make it to copy for story id = 11557806. -- This embed didnt make it to copy for story id = 11557806. -- This embed didnt make it to copy for story id = 11557806. -- This embed didnt make it to copy for story id = 11557806. -- This embed didnt make it to copy for story id = 11557806. -- This embed didnt make it to copy for story id = 11557806. -- This embed didnt make it to copy for story id = 11557806. -- This embed didnt make it to copy for story id = 11557806. -- This embed didnt make it to copy for story id = 11557806. -- This embed didnt make it to copy for story id = 11557806. -- This embed didnt make it to copy for story id = 11557806. -- This embed didnt make it to copy for story id = 11557806. -- This embed didnt make it to copy for story id = 11557806. -- This embed didnt make it to copy for story id = 11557806. -- This embed didnt make it to copy for story id = 11557806.
Page
  • 1
  • |
  • 2
Join the Discussion
You are using an outdated version of Internet Explorer. Please click here to upgrade your browser in order to comment.
blog comments powered by Disqus
 
You Might Also Like...