Al-Muhajabah's Jottings

On February 9, Obama met with Congressional leaders of both parties to discuss how to proceed on a jobs bill. After this meeting, he held a news conference and in response to a question, offered this proposal on how to proceed with the jobs bill:

Around the same time, Senate Majority Leader Harry Reid recorded a video statement listing the elements he wanted to see in this introductory jobs bill:

To summarize, these elements are:

* Tax credit against payroll taxes for hiring new workers[1]
* Extension of tax credit for small businesses to invest in equipment
* Extension of Highway Bill

Because the jobs bill involves tax-related issues, it needs to go through the Senate Finance Committee[2]. Today, February 11, the Finance Committee released a draft jobs bill (PDF). The bill contains the following job-related items:

* Tax credit against payroll taxes for hiring new workers (Title I)
* Extension of tax credit for small businesses to invest in equipment (Title II)
* Extension of Highway Bill (Title IV)
* Extension of unemployment benefits (Title VII)

Hmm, sounds familiar, doesn't it? The draft bill proposed by the Senate Finance Committee contains exactly what Reid said that it would! Plus some additional help for the unemployed.

The tax credit against payroll taxes is similar to what Obama proposed in his State of the Union address[3] and has been promoting since then. He also wants help for small businesses to invest in equipment[4] and more spending on infrastructure[5]. So the bill is not only what Reid said it would be but contains items that Obama wants.

In addition to these three measures, he has also promoted several other measures that are not included in the draft jobs bill[6].

But look back and what he said at the news conference! He wants a bill passed as soon as possible even if it doesn't have everything he wants. And then another bill will cover the rest.

So not only does the bill contain several measures that Obama wanted, and everything that Reid said it should, but the strategy being pursued is exactly the one that Obama recommended!

So why are people so upset?

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Note: The draft jobs bill does contain several other measures (Title III, Title V, Title VII, Title VIII, Title IX) that are not related to jobs. Most of these are necessary extensions of expiring programs. It is typical for Congress to include such measures in must-pass legislation - think how many things the Democrats (and Republicans in the past) have passed by attaching them to defense appropriations bills. Focus on the job-related elements in analyzing the bill.

[1] For some reason, some liberals are attacking this measure, but according to the Congressional Budget Office (PDF) it is actually one of the most effective job-creation measures.
[2] http://en.wikipedia.org/wiki/Senate_Finance_Committee
[3] "I'm also proposing a new small business tax credit -– one that will go to over one million small businesses who hire new workers or raise wages."
[4] "Lets.... provide a tax incentive for all large businesses and all small businesses to invest in new plants and equipment"
[5] "Next, we can put Americans to work today building the infrastructure of tomorrow"
[6] These include using TARP funds to encourage community banks to loan to small businesses, eliminating the capital gains tax on small businesses, the "cash for caulkers" tax credit for people who weatherize their homes, and tax credits for companies that create jobs in the U.S.

Added: Reid indicates that there will be more jobs bills than just this one. Just as the strategy calls for. It also sounds like the extraneous content may be dropped - but Reid clearly lists the same three priorities from before, so the core of the final bill is still the same. People really need to pay a lot closer attention here.