Posted on 06/10/2011 8:26:27 AM PDT by Libloather
Do more on jobs, Dems tell Obama
By Alexander Bolton - 06/10/11 06:00 AM ET
Senior Senate Democrats are growing frustrated by what they see as President Obama’s passivity on the economy, and are beginning to discuss a large infrastructure package funded by tax increases.
Some Democrats, such as Iowa Sen. Tom Harkin, who serves as chairman of the Health, Education, Labor and Pensions Committee, think such a package could lower the unemployment rate by as much as two percentage points.
But the plan is not without political risk — Republicans would be quick to slap Democrats with the old “tax-and-spend liberals” label. And the prospect of passing such a plan through the GOP-led House of Representatives — where conservative freshmen hold significant clout — is slim.
“I am concerned about the Obama administration’s approach on this,” Harkin said. “It always has been about jobs. I think the administration kind of got snookered talking about the deficit and the debt after the last election.
“The last election was about jobs and the economy, and now we’re in a position where we really do need some economic pump-priming by the federal government,” he said.
Sen. Jay Rockefeller (D-W.Va.), chairman of the Senate Commerce Committee, endorsed Harkin’s argument for more infrastructure spending, and said it is gaining support in the broader caucus.
“There’s very broad support,” Rockefeller said. “There’s no other way to get at this problem.”
Rockefeller said a spending package was discussed at several meetings Wednesday and that there’s a recognition Democrats need to be tougher in negotiations with Republicans.
“We have to be much more aggressive about all this, because as soon as they say ‘We’re not going to do that,’ as they’ve been saying for so long about so many things, you just kind of say ‘oh.’ We’ve got to stop saying ‘oh,’ ” he said, referring to the hard line Republicans have taken for Medicare cuts and against tax increases.
Even centrists like Senate Budget Committee Chairman Kent Conrad (D-N.D.) say a major infrastructure package funded by tax revenue-generating measures is what’s needed to strengthen the economy. But Conrad wants a smaller package than some of his more liberal colleagues. He has suggested $100 billion in infrastructure spending.
Conrad estimates the Treasury loses about $1.1 trillion in revenue a year in special tax breaks — or what some Democrats call tax expenditures. Some of these tax breaks — subsidies for oil companies and breaks for companies that relocate factories overseas, for example — could be ended to fund infrastructure projects.
“We have a significant shortfall in the trust fund to pay for transportation. How do you pay for it? You got to pay for it with other spending cuts or additional revenue,” Conrad said. “I would prefer to go after offshore tax havens to pay for it.”
Conrad, citing data from the Permanent Subcommittee on Investigations, said closing these offshore tax havens could generate up to a $100 billion a year.
Senior Democrats discussed the prospect of a major infrastructure package at meetings Wednesday, and several endorsed the idea, according to Democratic sources.
Jared Bernstein, former chief economist to Vice President Biden, said Democrats should not shy away from spending money to energize the economy.
“There are some things you can do without spending money, but that’s obviously a very tough constraint and not one that politicians should accept,” he said.
Bernstein, who met with the Democratic Caucus Thursday, said it would be ambitious to hope that more infrastructure spending could reduce unemployment by 2 points, but nevertheless said it’s a smart idea.
“Given the realities and politics around it, any package that would create some jobs through infrastructure investment, I would support,” he said.
Even if Democrats can move a significant infrastructure-spending package paid for by closing tax subsidies through the Senate, pushing it through the House would be much tougher.
“It would never get through the House of Representatives,” Conrad said.
But it might have a better chance if it were added to a massive deficit-reduction package that saves $4 trillion or more over the next decade.
Democrats are concerned about a report released last week by the Labor Department showing the economy added only 54,000 jobs in May and that the unemployment rate increased to 9.1 percent.
Democratic leaders have felt their hands tied by the $1.6 trillion federal deficit and a constant barrage of Republican criticism over spending.
Centrist Senate Democrats facing tough reelections are even reluctant to raise the national debt ceiling if a plan is not accompanied by spending cuts. This has underscored the political reality that jobs legislation cannot pass if its costs are not offset by tax increases or other cuts.
The tight budget picture has forced Democrats to advance relatively modest jobs bills, such as the reauthorization of the Economic Development Administration, now pending on the Senate floor. Democrats want to boost the agency’s budget to $500 million a year, a small increase compared to the roughly $15 trillion national economy.
“It’s small but it’s helpful, it’s in the area where unemployment is, which is largely unskilled people who need a manufacturing-type job,” said Sen. Dianne Feinstein (D-Calif.).
Without ending tax breaks to fund new stimulus legislation, jobs bills will have to remain modest.
“The political, fiscal situation combined almost puts handcuffs on governmental actions. It’s frustrating,” she said.
More jobs? Hussein will add more Czars to speed up their destruction of the US economy and US Constitution.
Simply tear up all the policies Obama has signed into law or regulation.
Obamacare, EPA, Interior Dept, Treasury, the Fed, etc...
How can the Obamaloon create jobs for a sector he’s never worked in?
(And for a sector that would never hire him, since he has no demonstrable abilities - save for creating CO2 and stink...)
I didn't have to read anything after this first statement. Absurd and irresponsible. These people are out to destroy America.
Did I mention making the Unions, Goldman Sachs, and GE pay back all of the bribes they’ve received?
Stuff your tax increases!!!!
>Do more on jobs? Just get out of the way.
let’s make it more simple: have the kenyan klown resign from office.
>>> Do more on jobs, Dems tell Obama (aims to make it easier, cheaper to create private sector jobs)
Do more on jobs, Dems tell Obama
- not run for reelection
- to take a permanent hike
- take all those people he implanted at all levels with him
- admit he’s a fraud, the policies/treaties/laws he signed nullified
Yeah, it’s as if we’re in the SNL segment called “REALLY??”
The private sector has existed now for centuries in this country, and Bambi has yet to discover it.
The Dems are skeered they are going to get their *sses handed to them in ‘12.
He’s doing the opposite, but will say he’s doing right for America.
That was my first thought. I thought the Stimulous bill was aimed at infrastructure. At least that is what they told me. Sheesh
Listen you stupid Dems this is how it works with you thieves.
TAX
SPEND
FAIL
Get out of our wallets and we’ll get the economy going.
Beginning of the crack-up.
They want to run on a huge WPA-style jobs program. This will NOT pass the House. Then they can run on blaming Republicans for failing to pass a second Porkulus which most of the public does not want in the first place.
Obama has enough problems and likely does not wish to skate into this one, which will only exacerbate the fissures opening up within this party.
The last group of shovel ready jobs that didn’t materialize docent count.
This is the real pitch for shovel ready jobs.
Just curious. How will taking taxpayer money to build something create permanent jobs? The government will only contract to companies that donate to dems which means blue states and unions will benefit, while people who are out of work won’t have a shot.
No jobs will be created. This is money for unions to kick back for 2012.
Stupid Taxing Bastards,They have run up energy costs and the rabid alphabets,EPA and the rest! along with Zippy Care Who in the hell would hire anyone??
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