Levees Not War

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“I am sending this Congress a plan that you should pass right away. It’s called the American Jobs Act. There should be nothing controversial about this piece of legislation. Everything in here is the kind of proposal that’s been supported by both Democrats and Republicans—including many who sit here tonight. . . .”

“This is the American Jobs Act. It will lead to new jobs for construction workers, for teachers, for veterans, for first responders, young people and the long-term unemployed. It will provide tax credits to companies that hire new workers, tax relief to small business owners, and tax cuts for the middle class. And here’s the other thing I want the American people to know: The American Jobs Act will not add to the deficit. It will be paid for.”

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President Challenges Congress to Act as if It’s Functional

President Obama did the right thing—about two years late—in asking for an address before a joint session of Congress. For only the second time in his presidency in a speech other than a State of the Union address (the other occasion was in September 2009 when he launched a big push for health care reform), the president pitched to the nation a plan costing just under $450 billion designed to avert a second recession and attack an unemployment crisis and economic stagnation that require action now. Economists say it could add almost 2 million jobs. Paul Krugman says, “significantly bolder and better than I expected.” Even conservative NYT columnist David Brooks says the plan has potential and is worth pursuing.

In “plainspoken, Trumanesque” language—no wonky terms or professorial manner tonight, not even the highfalutin word “infrastructure”—Obama pressed for a jobs and economic relief package with a memorable name, the American Jobs Act, that is 55% tax cuts, 31% infrastructure and local aid, and 14% unemployment insurance. (Detailed breakdown here.) He stressed the bipartisan origins of the proposals, and about a dozen times in 30 minutes he directed Congress to “pass this bill.” Obama was assertive, even imperative, yet his message was warmed by a progressive moral vision; if he keeps this up he just might win re-election.

What’s in the American Jobs Act?

Washington Post policy analyst Ezra Klein observes that “the plan, taken as a whole, attempts to include every single theory of how to address the jobs crisis. If you believe we need more direct spending, you’ve got the infrastructure component. More tax cuts? The plan has $250 billion in tax cuts. More help for the unemployed? Yep.”

Among the elements identified by Ezra that we find most appealing are:

•  “$35 billion in aid to states and cities to prevent teacher layoffs, and earmarks $25 billion for investments in school infrastructure.”

•  “$50 billion for investments in transportation infrastructure, $15 billion for investments in vacant or foreclosed properties, and $10 billion for an infrastructure bank.” (Why not the $50 billion for an infrastructure bank that Obama has proposed before?)

•  “$49 billion to extend expanded unemployment insurance benefits. $8 billion for a new tax credit to encourage businesses to hire the long-term unemployed, and $5 billion for a new program aimed at supporting part-time and summer jobs for youth and job training for the unemployed.”

The jobs act, crafted by the administration, not left to the tender mercies of congressional committees—is heavily weighted with originally Republican ideas that will make it politically harder for the G.O.P. to dismiss. They will invent reasons to reject it anyway, though House Speaker John Boehner (R-Ohio) did have the decency to release a statement that “The proposals the President outlined tonight merit consideration.” Maybe those golf games are paying off. Republicans do not want to allow this president any kind of accomplishment before November 2012, regardless of the deep and widespread suffering of millions of jobless, homeless, hopeless fellow citizens whose taxes pay the representatives’ salaries and health plans. (Note: The American Jobs Act “will not add to the deficit”: it will be paid for by cuts elsewhere. Even if it were not paid for, it would cost only about half of the projected $800 billion addition to the deficit incurred by extension of the Bush Tax cuts for million- and billionaires in Dec. 2010.)

“The people who sent us here—the people who hired us to work for them—they don’t have the luxury of waiting 14 months. Some of them are living week to week, paycheck to paycheck, even day to day. They need help, and they need it now.”

“Paycheck to paycheck”? Some 15 to 20 million would-be workers have no paycheck at all, not even unemployment benefits.

(more…)

Budget cutting is all the rage; a recent attempt to let the Bush-era tax cuts expire was defeated by Obama’s deal with the Republican congressional leadership. (See our reaction to that regrettable deal here and here.) In this time of (unnecessary) revenue shortfalls and budget crises, who speaks for raising taxes? We do. And we’re not alone. (For example, Bill Gates Sr., a wealthy man, believes the rich should pay more.)

Recent letters to the New York Times in response to a superficially reasonable column by David Brooks spoke well about the need to raise revenues by taxing the wealthy, reducing tax breaks for the rich and for corporations, and, when cutting the budget, to include defense spending. (As is often the case, the best part of the paper is the Letters to the Editor.) The writers convey their views well, so we’ll say no more except to commend their good sense.

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If you feel the same way, please write letters to the editors of your own local papers, and phone your local news stations and the news networks listed here (lower page) and say so. Demand that producers present the views of proponents of fair taxation of upper-income Americans—such as the Citizens for Tax Justice and the National Priorities Project—rather than only presenting the arguments of “fiscally conservative” budget-slashers. Thank you.

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