Good Jobs Now

The Obama Administration, together with Democratic allies in the House and Senate, has focused its legislative energy on creating good, sustainable jobs, and soon. These measures, which are critical to putting Americans back to work and reviving the middle class, have been derailed by opponents’ unrealistic, highly political and over-zealous fixation on reducing the deficit. Although the deficit is a long-term problem brought on by ever-increasing health care costs, the more immediate concern is the need for BAC members to return to work.

The following legislative actions, although limited in their ability to fully address the current unemployment crisis and reverse the economic downturn, are steps in the right direction. The International Union, BAC members and affiliates, and the labor community are continuing to push aggressively for further stimulus funding to put our members and the country back to work.

To see a breakdown of stimulus funding, click here.

Extending Aid to State/Local Government

On August 10, 2010, President Obama signed into law a package of $26 billion in aid for state and local governments.

BAC and labor advocates applauded the signing of the bill, which includes:

funding to help state and local governments save the jobs of 300,000 teachers, firemen and police officers;
funding to help states pay rising Medicaid costs; and
foreign tax credit limits that will increase government revenues by $9.6 billion over the next 10 years.

The House voted 247-161 to approve the legislation. The vote was almost exclusively along party lines, with just two Republicans joining all but three Democrats in favor of the measure. The Republicans in favor were Reps. Michael Castle (R-DE) and Anh "Joseph" Cao (R-LA), while the Democrats opposed were Reps. Bobby Bright (D-AL), Jim Cooper (D-TN), and Gene Taylor (D-MS).

The legislation's full $26 billion cost is offset by tax increases or spending cuts elsewhere in the federal budget.

Unemployment Extension

After several failed attempts, the unemployment extension passed the Senate and President Obama signed it into law on July 22, 2010. This bill extends the unemployment insurance benefits filing deadline, which had expired on June 2nd, to November 30, 2010. The COBRA subsidy extension, however, had been removed from the bill in order to gain passage in the Senate.

The Small Business Jobs and Credit Act/ Small Business Jobs Tax Relief Act

In June 2010, the House passed legislation to get small businesses back on the road to growth and into a position to hire workers. An essential engine of our economy, small businesses are responsible for creating two-thirds of the new jobs in the U.S. during the last 15 years. Tight credit and strict lending standards have made it tough for small firms to get by, let alone expand and hire or re-hire employees. The Small Business Jobs and Credit Act (HR 5297) and Small Business Jobs Tax Relief Act (HR 5486) would expand lending to small businesses and offer tax incentives to help them grow, hire workers, and fuel the economy.

According to the Congressional Budget Office (CBO), the non-partisan agency that estimates the impacts of legislation, the $30 billion fund will be dispersed by small banks within a year, with roughly two-thirds paid back to the Treasury by 2015. By 2020, the CBO estimates that the fund will actually wind up creating a net gain of $1.1 billion for the federal government.

The Senate is expected to act on the bill soon.

Hiring Incentives to Restore Employment (HIRE) Act

Originally proposed at $150 billion, but scaled down to $17.5 billion in order to pass the Senate, the HIRE Act was signed into law by President Obama on March 18, 2010. This new law:

Expands the use of the Build America Bonds program, which helps states and municipalities fund capital construction projects.
Exempts employers from Social Security payroll taxes on new hires who had previously been unemployed.
Funds highway and transit programs through 2010.
Extends a tax break for businesses that spend money on capital investments, such as equipment purchases.