We need jobs.
The country, that is, and we need them now.
Washington does not seem to be getting the message.
President Barack Obama announced his job plan recently and is challenging congressional Republicans to back his proposal to cut payroll taxes.
Although the plan has merit, many say it will not pass Congress, and Obama is daring Republicans to do nothing in the run up to 2012 presidential election.
But with unemployment holding steady at 9 percent, people have no interest in political maneuvering. They want jobs, and they want them now. That’s why political leaders need to do something. Whether or not it’s the president’s plan, it needs to be significant and it needs to put Americans back to work.
U.S. Rep. Chellie Pingree, D-Maine, said the American Jobs Act would support thousands of jobs in Maine and provide a tax break to tens of thousands of Maine businesses. She added Maine would stand to get nearly $120 million to help keep teachers and first responders working.
The American Jobs Act would also invest in infrastructure, which would bring a minimum of $138 million to Maine to fix roads and bridges, she said.
Extending the payroll tax cuts for middle class Americans is also an important part of the plan that should be done on its own. Economists say companies will not increase their production without demand, and nothing will stymie demand like a tax increase on the working class.
Tax increases must be considered as a part of tax reform. Many wealthy people and large corporations benefit from accountants who can exploit loopholes to keep their clients from paying the taxes they should. The only tax credits that should be available after a tax code overhaul are those for new jobs created in this country or jobs that are maintained within this country.
Giving large corporations tax breaks to create more jobs overseas will not help Americans get back to work and will not help the future of our economy.
An important plan to consider would be broadening the tax base, rather than raising taxes ”“ although that may be the result for those who have “written off” all they would pay in taxes. By broadening the base and closing loopholes, corporations would end up paying their share unless they get specific breaks for creating or keeping American jobs.
While people may complain that the wealthy and large companies already pay the most in taxes, the fact is that they do not drive the economy. Spending by the majority of Americans ”“ the middle and working class ”“ on everyday things like groceries, gas and services drive the economy. So while the solution may not be “fair,” it is the only realistic way to continue to grow this economy and stop a future recession.
In addition to overhauling the tax code and creating incentives for businesses to create jobs for Americans, the country needs to invest in and move forward with jobs for the future ”“ in arenas like biomedical and technology. Research and development will create the well-paying jobs needed for the future while putting the United States in a competitive position globally.
Recent changes to patent laws ”“ to help inventors bring their products to market ”“ is a step in the right direction.
As Washington considers the president’s plan, we hope legislators will pass the proposals that make sense for the country instead of rejecting the plan as a whole and making Americans suffer for their political showdowns.
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Today’s editorial was written by City Editor Robyn Burnham on behalf of the Journal Tribune Editorial Board. Questions? Comments? Contact Managing Editor Kristen Schulze Muszynski by calling 282-1535, Ext. 322, or via e-mail at kristenm@journaltribune.com.
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