President wants to pay for American Jobs Act with taxes

Last week, President Obama announced his plan for getting people back to work, the American Jobs Act. It is estimated to cost $447 billion and would be primarily funded by raising taxes on higher income earners by reducing certain tax credits and deductions, including a corporate jet depreciation tax deduction.

Additionally, Obama’s jobs bill would eliminate a number of tax breaks for oil and gas companies. The Joint Select Committee on Deficit Reduction (commonly referred to as the debt panel “supercommittee”) has also been charged with finding additional budget savings and/or new revenues to pay for the American Jobs Act, and the President has indicated that he’d be willing to sign in pieces of the legislation if necessary.

Critics of the bill argue that it largely just extends provisions that are already in place – such as a payroll tax cut, infrastructure spending, and extending unemployment benefits. Critics have also objected that the President is essentially doubling down on policies that have already been tried and failed, pointing out that if these policies did not help grow the economy before, there is little chance they will do so now.

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