The “Jobs” Bill Sham
Yes, another in a long line of spending bills which has a purported purpose it won’t accomplish. What it will accomplish is an increase in the debt.
None other than Nancy Pelosi is troubled by the fact that it appears the proposed “jobs” bill being rushed through Congress doesn’t create, uh, jobs.
The White House session with congressional leaders was supposed to be a step toward bipartisanship, with a focus on jobs. But Pelosi made it clear that there’s disagreement, even among Democrats.
White House economic advisers Christina Romer and Larry Summers defended the administration’s proposal to give employers a $5,000 credit for each new worker they hire as well as help with Social Security taxes.
Pelosi countered that no one she’s consulted believes that the plan will actually lead to the creation of new jobs, sources said.
“She questioned the efficacy of it,” one Democratic aide said.
For once, Pelosi is right – any jobs created will be at the margins. In fact, the centerpiece of the “jobs” bill is – wait for it – and extension of unemployment benefits.
And, of course, you remember the big “we’re concerned about the deficit” announcement not long ago where Congressional Democrats again said they were instituting PAYGO (a means of forcing Congress to pay for new spending by cutting the budget elsewhere or raising taxes) as a means of controlling it? Yeah, except for this boondoggle. Here’s from the last page of the draft bill:
(a) IN GENERAL.–One-half of the amounts in each of titles V and VI are designated as an emergency requirement pursuant to section 4(g) of the Statutory Pay-As-You-Go Act of 2010, and designated as an emergency requirement pursuant to section 403(a) of S. Con. Res. 13 (111th Congress), the concurrent resolution on the budget for fiscal year 2010.
In case you’re wondering what titles V and VI are, Jamie Dupree fills us in:
Title V of the jobs bill deals with expiring tax credits and tax breaks known as “tax extenders” – which Congress constantly renews every year or two, always resisting talk of making them permanent.
Those provisions are said to be worth about $33 billion, so one half of that would go to the deficit.
Title VI of the draft bill centers around extended jobless benefits and extra health (COBRA) provisions for the unemployed. That’s another big chunk of money.
The estimated total for the bill is $104 billion with little if anything in it which will actually create jobs.