President Barack Obama has sent a new job bill through to Congress, proposing to slash $467bn worth of tax breaks currently enjoyed by the richest American individuals and companies. Republicans have objected to the proposal, accusing Obama of attempting to bill “job creators”.
Oil and gas firms and hedge-fund managers are amongst those who stand to lose beneficial tax loopholes if The American Jobs Act passes into law. A deeply divided Congress means its success is far from guaranteed.
Those who’ll benefit include teachers, firefighters, and small-business owners, many of who joined Obama in the White House Rose Garden on Monday. The new bill promotes spending on teacher recruitment cutting payroll taxes for employers and their workers.
Most of the cash is to be raised by limiting tax deductions and exemptions for families earning over $250,000, and for individuals earning over $200,000.
For his part, the president has claimed the bill will “not add a dime to our deficit,” and warned, “If Congress does not act, just about every family in America will pay more taxes next year.”
Meanwhile, Republicans remain broadly opposed, with spokesman for House Speaker John Boehner Brendan Buck stating, “It would be fair to say this tax increase on job creators is the kind of proposal both parties have opposed in the past.”
The plan is to be submitted to the new congressional “super-committee,” a body with the option to accept Mr Obama’s proposals or offer new ones.