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Blog Category: Payroll tax cut

Acting Secretary Blank Visits Newark One-Stop Career Center with Mayor Cory Booker, Highlights American Jobs Act

Acting Secretary Blank, Mayor Booker and Director Nelida Valentin at One-Stop Center, Newark (Photo: office of Mayor Booker

Acting U.S. Commerce Secretary Rebecca Blank joined Newark Mayor Cory Booker today for a visit to the Newark One-Stop Career Center, a city program that connects residents to career opportunities, provides vocational training and offers continuing education services that aim to meet the needs of both employers and job seekers.  The program is operated by the Newark Mayor’s Office of Employment and Training.

In her remarks, Blank said, "Outside experts say the American Jobs Act would put nearly two million people to work, while putting more money in the pockets of workers and repairing infrastructure vital to enhancing America’s competitiveness,” Blank said. “It’s time for Democrats and Republicans in Congress to come together and swiftly pass the measures in the Jobs Act, which will put people back to work right away and put more money in the pockets of American families.”  Release  |  Remarks

The American Jobs Act: Cutting Payroll Taxes Supports Consumer Spending

Image of tax forms

This morning, the U.S. Census Bureau released its latest Retail Sales figures for September and they went up sharply (1.1percent), with gains in lots of categories.  The gains in July and August were revised upwards, too.  From an economic growth point of view, this is unequivocally good news.  However, history and statistics tell us not to get too excited over a single data point. So, although this is good news, it is clear that economy is not growing as fast as it needs to. That’s why President Obama has proposed cutting payroll taxes in half for 160 million workers next year.

As the Economics and Statistics Administration has already shown, job gains combined with lower taxes equals more spending. That’s why these tax cuts make sense. They help create demand to give the economy a little breathing room while it recovers.

The president’s plan will expand the payroll tax cut passed last December by cutting workers' payroll taxes in half next year. This provision will provide a tax cut of $1,500 to the typical family earning $50,000 a year. As with the payroll tax cut passed in December 2010, the American Jobs Act will specify that Social Security will still receive every dollar it would have gotten otherwise, through a transfer from the General Fund into the Social Security Trust Fund.

The American Jobs Act: Full of Bipartisan Ideas

View of Joint Session from birds-eye view (White House photo)

The American people understand that the economic crisis and the deep recession weren’t created overnight and won’t be solved overnight. The economic security of the middle class has been under attack for decades. That’s why President Obama believes we need to do more than just recover from this economic crisis—we need to rebuild the economy the American way, together, based on balance, fairness, and the same set of rules for everyone from Wall Street to Main Street. Members of Congress on both sides of the aisle should lend their bipartisan support for the American Jobs Act—because it is full of bipartisan ideas.   White House fact sheet and overview