Reid Tries to Get Bi-Partisan Support for Stimulus-II

by Sal on February 11, 2010

in Economy,Politics

Harry Reid has pared back the stimulus-II a.k.a. jobs bill in an attempt to win some GOP support.  He has reduced the stimulus to only include:

  1. Spend more on highway and transit programs
  2. Exempt employers from paying the payroll tax if they hire new employees
  3. Capital investment tax breaks for businesses
  4. Increase bond offerings to states, cities, and towns to fund capital construction projects.

Only item three will have any real stimulative effect.  Items one and four are simply pure pork.  Item 2 will do nothing, as employers will not hire a $30k+ employee when they only get a $6,000 max tax credit (and what about higher-salaried employees, such as a $100k employee?)  Employers only hire when there is a viable business need to expand their business.

The bill will likely garner some GOP support (Snowe, Collins, etc.) because it is so pared down, but look for most Republicans to see this for what it really is – an attempt by the Democrats to say they passed a bill with bi-partisan support, so when the economy does not get much better, they can point out that both parties supported it, or if the economy does miraculously improve by November, they can take the credit.

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