Proposed Millionaire Tax Would Pay for Obama Jobs Plan

Revenue Generated by Tax Would Completely Fund Programs in Jobs Proposal

by Curtis White on October 13, 2011

Members of Congress continue to review and debate the details of the jobs plan put forth by the Obama administration. One revision to the American Jobs Act that the Senate has called for, a surtax on those making above $1,ooo,ooo a year may be able to strengthen support. The tax alone would create enough to money for the government to fully fund all aspects of the jobs plan, and even have a little left over.

According to a report released by the Congressional Budget Office, the millionaire tax, which would charge a 5.6 percent surtax on anyone with a gross annual income over $1,000,000, would create $453 billion in additional revenue.

The American Jobs Act, better known perhaps as Obama’s New Jobs Plan, would create tax cuts in the neighborhood of $447 billion. The price also includes the spending the jobs plan calls for on reinforcing infrastructure, job training, and other programs. The act will also cut the national debt by $6 billion over the next ten years.

Despite the calculations, many members of Congress are loath to pass any Obama-backed legislation. According to House Majority Leader Eric Cantor (R.), will not even be voted on in the House of Representative, at least not in its full form at any rate.

Currently, the jobs plan is stalled in the Senate, where a slim number of dissenting Democrats and 100 percent of all Republican senators voted no. Cantor’s remarks may not even be necessary, though his comment that, “[Obama] has got some whipping to do on his own side of the aisle,” has since been proven true.

House Democratic Leader Nacy Pelosi still supports the jobs plan. “Instead of supporting legislation to put people back to work and put money in the pockets of workers, Republicans are ignoring America’s top priority, “she said, “Republicans should schedule action on the American Jobs Act to help put Americans back to work.”

Most Republicans have said that they cannot fully support the jobs plan because of certain disagreements they have with parts of the large bill. While they have expressed desire to pass legislation to help with the unemployment crisis in America, “This all or nothing approach,” said Cantor, “Is unreasonable.”

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