On Thursday, US President Barack Obama proposed an ambitious economic stimulus plan to a joint session of Congress. The $447 billion American Jobs Act is aimed at not only stimulating the economy but reducing the US' unemployment rate which has hovered at or above 9 percent over the last couple months.
The key feature of the plan is to cut payroll taxes from 4.2 percent (the current level) to 3.1 percent for workers and slashing payroll taxes in half from the current 6.2 percent to 3.1 percent for businesses in order to stimulate hiring activity. Additional tax cuts would be given to businesses that hire new workers, especially those who have been unemployed for an extended period of time (at least six months).
Another aspect of the plan would be $105 billion in public works spending, a feature that industry leaders in the steel, construction and transportation sectors applaud.
In a press release, Leo W. Gerard, International President of the United Steelworkers (USW), commented, "President Obama has made it clear to us that job creation is his top priority--now it needs to become one for this Congress. Unemployment is stuck near double-digits and the economy stagnant. We need action now. Inaction is unacceptable.
He added, "The billons of infrastructure investments announced by the President will drive new jobs in manufacturing. He is right in saying that the next generation of manufacturing must be Made in America." Finally, Gerard voiced his support of the plan, "We call on Republicans to join the Democrats' lead on the jobs plan and abandon their confrontational obstructionist tactics. We need to put America back on track. USW members will do their part and make their voices heard in support of the Administration's plan."
US Transportation Secretary Ray LaHood echoed his support as well, noting that "We've got unemployed construction workers, standing by, ready to roll up their sleeves right now. This is the moment for Congress to set aside the politics and partisanship, to pass the American Jobs Act, and to put America back to work."
Chief Executive Officer of the Associated General Contractors of America (AGC), Stephen E. Sandherr also backed the President's new stimulus plan and urged Congress to act quickly. "As the President made clear last night, too many Americans are out of work or underemployed. Nowhere do we see that problem more severely than within the construction industry. Although construction represents only 4.5 percent of the US workforce, construction workers have accounted for over 20 percent of the jobs lost. Today the industry's unemployment rate is 13.5 percent--significantly higher than the national average." said Sandherr.
"Should Congress fail to enact the desperately needed infrastructure investments the President proposes, too many construction workers will remain unemployed, the private sector will suffer, and taxpayers will end up paying more, later, for infrastructure. Infrastructure projects don't just create construction jobs. New construction activity boosts demand for steel, concrete, construction equipment and countless other services and supplies," he added.