Sept. 8, 2011 | Rep. Pete Stark praised President Obama’s much-anticipated jobs bill unveiled Thursday evening for addressing his constituents’ top concern: job creation without cuts to popular entitlements.
“Putting people to work–not gutting Medicare, Medicaid and Social Security–is the best way to reduce the debt,” said Stark.
The American Jobs Act Obama previewed before a joint session of Congress hopes to instigate stagnant job growth by extending and expanding payroll taxes to as low as three percent by 2012. By lowering the tax, employees are able to realize higher paychecks, which economists believe will filter quickly through the economy and spur growth.
The plan would also feature cuts in payroll taxes for small businesses and a tax holiday for hiring new workers. Modernization of up to 35,000 schools and infrastructure repairs would make up $140 billion of the proposed $447 billion plan.
“I support a number of the policies that the President put forth tonight,” said Stark. “Extending unemployment insurance benefits has a strong stimulative effect on the economy and helps struggling families keep a roof over their heads and food on the table. Infusing the states with money to keep teachers in classrooms is essential to supporting our struggling communities and our kids.”
He says subsidizing paychecks through lowering of the payroll tax will prevent layoffs and created 25,000 job in California last year. Stark believes the president’s plan to build schools and fortify transportation systems will not only create much-needed jobs, but also make the country more competitive in the global market.
Obama’s job bill will put the onus on the recently formed Congressional Super Committee to create a higher targetst for long-term spending cuts, which may difficult, but Stark urged them to come to a consensus. “Job creation is a potent form of deficit reduction,” he said. “I urge the Super Committee, tasked with slashing our deficit, to focus on this critical tool.”