Tuesday, February 23, 2010

Senate Invokes Cloture on Jobs Legislation

On Monday, the Senate invoked cloture (end debate or limit time for bill consideration) by a 62-30 vote on the Senate Jobs legislation introduced by Senate Majority Leader Harry Reid (D-NV). The Senate Jobs legislation would provide $15 billion in tax cuts, with the bulk of the funding intended to help employers hire new employees. The Senate is now expected to consider and pass its bill sometime this week. The legislation includes:
  1. Payroll Tax Exemption: offers an exemption from social security payroll taxes for every worker hired in 2010 who has been unemployed for at least 60 days. There would also be an additional $1,000 income tax credit for every new employee retained for 52 weeks to be taken on the employer’s 2011 income tax return. ($13 billion)
  2. Section 179 Expensing: helps small businesses grow by allowing them to write off more of their expenditures.
  3. Highway Trust Fund Extension: extends existing highway programs, which provides states and localities with the certainty they need to make decisions on projects.
  4. Expansion of Build America Bonds: allows state and local governments to borrow at lower costs to finance more infrastructure projects and put people to work. ($2 billion)
The Senate bill differs greatly from the House Jobs bill (see below) and it is unclear how they will proceed to conference a final bill. Majority Leader Reid did announce that he would introduce bills to cover a wide range of provisions that were included in the House bill.

Last year, the House of Representatives passed the “Jobs for Main Street Act of 2010” by a 217-212 vote. The act provides $154 billion for a number of programs. Most importantly, $23 billion will be available to states as part of an “Education Jobs Fund” over the next two years. 95% of the funds will be allocated by states to school districts and public institutions of higher education to retain or create jobs that provide educational services and to modernize, renovate, and repair public education facilities.

The bill provides $750 million in competitive grants to train workers for jobs in high-growth fields. The bill also provides $300 million for the Federal Work Study Program.

The summary of the bill can be found here: http://appropriations.house.gov/pdf/Jobs_for_Main_Street_Act_of_2010_Summary.pdf.

The bill can be found here: http://appropriations.house.gov/pdf/2010_Jobs_For_Main_Street_Bill_Text.pdf.

No comments:

Post a Comment