Video: Obama calls on Congress to pass jobs bill

  1. Closed captioning of: Obama calls on Congress to pass jobs bill

    >> chuck, good morning.

    >> good morning. it was a fiery president that went to the well of the house to plead with congressional republicans to pass his latest idea that jump-start america's flagging economy.

    >> you should pass this jobs plan right away.

    >> reporter: the president had a message. and to make sure no one missed it, he repeated it 17 times.

    >> you should pass it right away. you should pass this bill right away. you should pass it.

    >> reporter: the american jobs act which the president formally sends to congress next week calls for tax breaks for companies who hire new workers, who have special incentives for someone who has spent more than six months looking for a job or for hiring veterans.

    >> the last thing they should have to do is fight for a job when they come home.

    >> reporter: it will extend unemployment benefits for another year. cuts payroll taxes in half for every working american and every small business . the president says that would save the typical family $ 1500 .

    >> $ 1500 that would have been taking out of your pocket, will go into your pocket.

    >> reporter: it has programs to build and repair infrastructure. and a plan to modernize 35,000 schools and rehire laid off teachers.

    >> there should be nothing controversial about this piece of legislation. everything in here is the kind of proposal that's been supported by both democrats and republicans. and everything in this bill will be paid for, everything.

    >> reporter: republicans responded to the president on two fronts. republican congressional leaders were conciliatory but the republican presidential candidates were more critical. rick perry hit the president for the $450 billion price tag saying he's guided by his mistaken belief that we can spend our way to prosperity. mitt romney released a web video for hitting the president for taking so long to focus on jobs, 961, by their count. the president anticipated the campaign rhetoric.

    >> the next election is 14 months away. and the people who sent us here, the people who hired us to work for them, they don't have the luxury of waiting 14 months.

    >> reporter: the selling of this plan begins today. the president goes to richmond, virginia, home of number two house republican eric cantor , and then next week he begins selling it by going to the home state of speaker john boehner .

updated 9/9/2011 10:11:55 AM ET 2011-09-09T14:11:55

President Barack Obama's promise Thursday that everything in his jobs plan will be paid for rests on highly iffy propositions.

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Read excerpts from Obama's jobs speech to Congress

It will only be paid for if a committee he can't control does his bidding, if Congress puts that into law and if leaders in the future — the ones who will feel the fiscal pinch of his proposals — don't roll it back.

Underscoring the gravity of the nation's high employment rate, Obama chose a joint session of Congress, normally reserved for a State of the Union speech, to lay out his proposals. But if the moment was extraordinary, the plan he presented was conventional Washington rhetoric in one respect: It employs sleight-of-hand accounting.

Video: Biden: Jobs plan will help US immediately (on this page)

A look at some of Obama's claims and how they compare with the facts:

OBAMA: "Everything in this bill will be paid for. Everything."

THE FACTS: Obama did not spell out exactly how he would pay for the measures contained in his nearly $450 billion American Jobs Act but said he would send his proposed specifics in a week to the new congressional supercommittee charged with finding budget savings. White House aides suggested that new deficit spending in the near-term to try to promote job creation would be paid for in the future — the "out years," in legislative jargon — but they did not specify what would be cut or what revenues they would use.

Essentially, the jobs plan is an IOU from a president and lawmakers who may not even be in office down the road when the bills come due. Today's Congress cannot bind a later one for future spending. A future Congress could simply reverse it.

Currently, roughly all federal taxes and other revenues are consumed in spending on various federal benefit programs, including Social Security, Medicare, Medicaid, veterans' benefits, food stamps, farm subsidies and other social-assistance programs and payments on the national debt. Pretty much everything else is done on credit with borrowed money.

So there is no guarantee that programs that clearly will increase annual deficits in the near term will be paid for in the long term.


OBAMA: "Everything in here is the kind of proposal that's been supported by both Democrats and Republicans, including many who sit here tonight."

THE FACTS: Obama's proposed cut in the Social Security payroll tax does seem likely to garner significant GOP support. But Obama proposes paying for the plan in part with tax increases that have already generated stiff Republican opposition.

For instance, Obama makes a pitch anew to end Bush-era tax cuts for the wealthiest Americans, which he has defined as couples earning over $250,000 a year or individuals earning over $200,000 a year. Republicans have adamantly blocked what they view as new taxes. As recently as last month, House Republicans refused to go along with any deal to raise the government's borrowing authority that included new revenues, or taxes.


OBAMA: "It will not add to the deficit."

THE FACTS: It's hard to see how the program would not raise the deficit over the next year or two because most of the envisioned spending cuts and tax increases are designed to come later rather than now, when they could jeopardize the fragile recovery. Deficits are calculated for individual years. The accumulation of years of deficit spending has produced a national debt headed toward $15 trillion. Perhaps Obama meant to say that, in the long run, his hoped-for programs would not further increase the national debt, not annual deficits.


OBAMA: "The American Jobs Act answers the urgent need to create jobs right away."

THE FACTS: Not all of the president's major proposals are likely to yield quick job growth if adopted. One is to set up a national infrastructure bank to raise private capital for roads, rail, bridges, airports and waterways. Even supporters of such a bank doubt it could have much impact on jobs in the next two years because it takes time to set up. The idea is likely to run into opposition from some Republicans who say such a bank would give the federal government too much power. They'd rather divide money among existing state infrastructure banks.


Associated Press writer Joan Lowy contributed to this report.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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