Funding Job Creation
Funding a Program of
November 30, 2010
Job creation must be among the nation's highest priorities.
Without job creation, millions of families will continue to
suffer from inadequate incomes that threaten their access to health care,
housing, and even food. Unemployment,
particularly if it is long term, is financially destructive, and destructive of
one’s mental, emotional, and physical health. Even if Congress continues to extend
unemployment insurance, benefits stop after 99 weeks. Many workers became
unemployed in early 2009 and, with each month that passes, more people
are permanently running out of benefits. Job creation is imperative.
Without job creation, millions of unemployed workers
and their families have little money to spend. With few customers, firms
struggle to survive. Production stalls, hiring is frozen, and investments
are put on hold. Firms cannot thrive and the economy will not return to
health until people can afford to buy the things they need.
Without job creation, millions of people continue to have
little income and pay few taxes. Tax revenues have fallen and the federal
deficit has ballooned because people are not working. To get the deficit under
control, we must put people back to work, back to earning money, and back to
Job creation must take priority over deficit reduction. Most
of the deficit is caused by the difficult economic situation. Putting people
back to work will raise tax revenues and reduce government expenditures on
safety net programs. Only after the economy is back on a sound footing – only
after people have found employment – should the deficit be tackled.
There are numerous sources of funding for job creation. Here
are some frequently-mentioned possibilities.
the Bush tax cuts for the 2% of taxpayers with the highest incomes: over
$250,000 for couples, $200,000 for singles.
the estate tax with progressive rates.
the mortgage interest deduction.
- Tax financial
transactions to reduce speculation.
capital gains at the same rate as earned income.
“carried interest” (income earned by hedge fund managers) as regular
The National Commission on Fiscal Responsibility and Reform (the “Bowles-Simpson Commission”) will release their report on December 1, 2010. Many people are concerned about
their premature focus on deficit reduction and emphasis on spending cuts over
revenue increases. Other groups have made alternative proposals for strengthening
the economy and reducing the deficit that rely on greater balance between
raising revenues and cuts in spending.
report from Rep. Jan Schakowsky (D-IL), a member of the National
Commission on Fiscal Responsibility and Reform
A summary article about these reports, “Liberal Groups to
Propose Routes to Smaller Deficit,” by Jackie Calmes appeared in the New York Times on November 29, 2010.