Congress Rends Jobs Bill To Bits

Reid guts bill like a fish

By all accounts, the jobs bill was on the path to victory. Senate Majority Leader Harry Reid announced that he was going to cut the bill from $ 85 billion to $ 15 billion, cutting it to about an eighth its former size.

How did he do this? Fox News also reports that he cut key priorities of both Republicans and Democrats. Why did he do it? Well, theres no official word from Reid on that, but there are plenty of others out there willing to offer up their theories. If Reid were to be asked why, it would likely be that it was a way to save money.

What will the jobs bill do?

The jobs bill, in its stripped down form, doesnt make it easier for businesses to borrow money, but it does offer tax breaks to employers who make new hires. Fox News says:

The $ 15 billion bill includes a $ 13 billion payroll tax break for employers who hire new workers; $ 35 million for small business depreciation; $ 2 billion for Build America Bonds for infrastructure; and a one-year extension of the highway bill.

Reid removed several extenders, including funding for research and development, and a provision to decrease the estate tax. The estate tax extender had a lot of Republican support.

Why did Reid hack the jobs bill?

Fox News reports that Reid gutted the bill due to criticism that the Democratic-sponsored jobs bill would not primarily create new jobs. Christian Science Monitor says:

Senator Reid appears to be making a political calculation that the GOP will have a difficult time voting against his own, stripped-down version of jobs legislation. Thats because Reid has left the bills central job creation provisions intact, while jettisoning tax breaks and other provisions intended to win Republican support.

Reid only offered the following tidbit to explain the actions he took: We are going to move a smaller package than talked about in the press. Republicans are going to have to make a choice. We have a bipartisan bill that will create jobs, according to the CBO, immediately. He added I dont know in logic what they could say to oppose this." The results remain to be seen!

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