President Releases New Jobs Proposal, Deficit Reduction Proposal
On September 12, 2011, President Obama submitted to Congress the “American Jobs Act of 2011.” The proposed legislation contains a number of provisions that would provide both tax relief and new spending. These include:
- Grants to retain or hire teachers, law enforcement officials, and first responders
- Grants for school modernization
- Additional funding for a host of existing transportation grant programs
- Various types of assistance targeted to unemployed workers
- Tax relief for businesses and individuals
The legislation also includes initiatives targeted at infrastructure financing, technology, and rebuilding foreclosed-upon properties. The cost of the bill—estimated at $447 billion—would be offset by reducing federal tax expenditures for corporations and raising taxes on high-income individuals, unless the Joint Select Committee on Deficit Reduction (JSC) created by the Budget Control Act of 2011 (BCA, P.L. 112-25) achieves additional deficit reduction to cover the cost of the bill.
On September 19, 2011, the president unveiled his recommendations for deficit reduction, to be transmitted to the JSC. The recommendations identify $4.85 trillion in deficit reduction from federal fiscal year (FY) 2012-2021, including both policies that already have been implemented or are part of his jobs proposal.
This brief describes both proposals with respect to provisions that would have a direct impact on state governments.