Higher Ed Utah

Throughout last week, it seemed imminent that the Senate would move a jobs package containing new tax cuts to stimulate hiring, extensions of other popular tax cuts set to expire, an extension of unemployment benefits and a number of other spending provisions. However, the blizzard conditions in Washington, coupled with a sudden change in direction by Senate leadership, have postponed any action on the bill until at least February 22, after the President’s Day recess.

On February 11, Senate Majority Leader Harry Reid (D-NV) announced plans to move a smaller version of the jobs bill than the original, bi-partisan proposal by the Senate Finance Committee that had been circulated. The new $15 billion bill will contain only four components of the Finance Committee’s proposal:

• payroll tax relief for businesses that hire new workers 
• extension of the Highway Trust Fund
• extension of the “Build America” bond program, which allows state and local governments to issue taxable debt with a federal subsidy
• extension of expense deductions for small businesses

Other parts of the original proposal, such as $31 billion in tax cut extensions, including the tax credit for teachers purchasing school and classroom supplies out- of- pocket, would be considered after the initial package. Sen. Reid expressed concern that these items were not strongly linked to job creation and thus should not be part of a “jobs” package.

The House passed its Jobs for Main Street Act of 2010 in December and has been waiting on the Senate to take action. This Senate package will likely be the first component in a series of smaller bills that hope to achieve the goals of the House-passed bill.