ACH Payroll Processing & Fedwire Blog

ACH Payroll Processing & Fedwire Blog

The American Jobs Act of 2011

Friday, October 07, 2011
The American Jobs Act of 2011

President Barack Obama on September 12, 2011 spoke to the Congress of the United States stating, “Today, I am pleased to submit to the Congress the enclosed legislative proposal, the “American Jobs Act of 2011,” together with a section-by-section analysis of the legislation.

The purpose of the American Jobs Act of 2011 is simple; put people back to work and put more money in the pockets of working Americans, which is great for us in the payroll and payroll tax processing industries! More people working means more payrolls and more payroll tax processing.

It will provide a tax cut for small businesses, to help them hire and expand; plus an additional tax cut to any business that hires or increases wages. This Act should put more money in the pockets of working and middle class Americans by cutting in half the payroll tax taken from paychecks. The typical savings will be an average of $1,500 a year.

Unemployment benefits will be extended to help those out of work support their families while looking for employment. While training programs will be structured to build real skills that will help the unemployed have real jobs. A new tax credit will be provided to employers hiring workers who have been unemployed for over 6 months. For our low-income youth and adults it will expand job opportunities through a new Pathways Back to Work Fund.

The Pathways Back to Work Fund is summarized as;

  • Summer and year-round jobs for youth.
  • Subsidized employment opportunities for low-income individuals.
  • Local efforts to implement promising work-based strategies and provide training opportunities.

The President talked about the very real danger that could happen from the economic situation in Europe that may further jeopardize our own economic recovery:

“This is not a game; this is not the time for the usual political gridlock. The problems Europe is having today could have a very real effect on our economy at a time when it’s already fragile. But this jobs bill can help guard against another downturn if the situation in Europe gets any worse. It will boost economic growth; it will put people back to work. And by the way, this is not just my belief. This is what independent economists have said — not politicians, not just people in my administration. Independent experts who do this for a living have said this jobs bill will have a significant effect for our economy and for middle-class families all across America. And what these independent experts have also said is that if we don’t act, the opposite will be true. There will be fewer jobs; there will be weaker growth.”

The Senate plans to vote next week, the week of October 10th, on the $447 billion jobs bill. The American Jobs Act is made up of the kind of ideas that both Republicans and Democrats have supported in the past.

Prominent, independent experts have confirmed that the American Jobs Act will materially improve economic growth and employment next year.

The American Jobs Act of 2011 if fully paid for, includes specific offsets to close corporate tax loopholes and asks the wealthiest Americans to pay their fair share that more than cover the cost of the jobs measures.

President Barack Obama spoke at a press conference in the East Room of the White House, Oct. 6, 2011, about the upcoming Senate vote on his plan, American Jobs Act, that is designed to put people back to work and put more money in the pockets of working Americans.

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