Ahead of tax-break speech, an eat n' meet with "a middle class family"... Back on American soil for less than 48 hours after his whirlwind tour of the Asia Pacific, President Obama was already heading out of Washington, DC on Tuesday morning. He took part in a favorite road ritual: En route to a speech at Central High School in Manchester, New Hampshire, President Obama stopped at Julien's Corner Kitchen for a planned lunch meeting with the Corkery family. The cozy, casual corner restaurant serves breakfast and lunch, pool reported, and is also located in Manchester. (Above: The President, the Corkery family, and their very low-cal meal)
According to a White House backgrounder about the 11:35 AM meeting, the President sat down with the Corkery family to discuss "the importance of extending and expanding the payroll tax cut that has given tax breaks to millions of families across the country this year," the subject of his speech at the high school. Chris Corkery, the father, has taught math at Central High for twelve years, and he is a retired Colonel, serving 26 years in the US Army. His wife Kathy, a small business owner, and their two sons, Andrew and Nicholas, were also at the lunch, which looks to have been extremely low calorie.
Mr. Corkery introduced the President at Central High School, where he was greeted by an audience of more than 1,200 as he warned Congress that failing to act on the tax cut "will hurt middle-class Americans."
The press pool was escorted into the restaurant to listen in on the beginning of President Obama's conversation with the Corkerys, which lasted 20 minutes.
"Although it was difficult to hear with music playing in the background, Mr. Obama could be overheard discussing Mr. Corkery's military service and his wife's role in supporting him during difficult times. The young children (roughly age 4 and 5) greeted Obama warmly," pool reported.
The President's motorcade was off and heading for the high school at 11:52 AM. Pool failed to report on what or if the President actually dined.
Info: Julien's Corner Kitchen is at 150 Bridge St, Manchester, NH03104. Phone: (603) 622-4044.
President talks food safety regulations during BBQ pork pitstop... Of course stopping for take-out is half the fun of tooling around the US in Ground Force One, the President's huge, $1.1 million armored, high-tech black bus. President Obama did just that on Monday as he surprised the lunchtime crowd at Countryside Barbecue in Marion, North Carolina. It is Day 1 of his three-day American Jobs Act Bus Tour, and the President had worked up an appetite from speaking at the Asheville Regional Airport. After snaking through the Blue Ridge Mountains along I 40, the President and his motorcade landed in the greeny enclave, population 8,075 at a little before noon. Marion's motto is "Where Main Street meets the Mountains." Today Marion got to meet the President.
"It is packed," Mr. Obama said as he surveyed the busy eatery. "There's not a seat open."
Countryside was ready for Halloween, according to pool, complete with pumpkins and a scarecrow. To a soundtrack of country music, the President, surrounded by delighted staff and patrons, stood at the counter and placed his order: A barbecue platter (slow smoked chopped pork, with two sides) and a large sweet tea. Of course the visit was less about lunch than it was about face time with voters. The President began moving through the dining area to greet customers, and went from banquette to banquette. There were hugs and some baby whispering. (Above: Wrangling a young local)
Talking about fed regulations... The lunchtime patrons might have been ordered from Central Casting: The President chatted with a group of uniformed paramedics; four women dressed in Native American garb, members of a senior citizen line dancing troupe; and a member of the City Council.
The President lingered at one table with three men, discussing US exports and regulations. One of the men, Dan Kuehnert, a lawyer, pressed the President to reduce government regulations.
"Now I got to tell you, there are some regulations that make sure our kids get safe food. So we got to balance that," the President said.
The deadly cantaloupe listeria outbreak and the massive Cargill ground turkey recall are cases in point.
35 minutes after he arrived, Mr. Obama emerged with a plastic bag holding styrofoam cartons, presumably his lunch to go. (The President waves to photographers as he departs)
He waved and boarded Ground Force One, and was back on the road, off to speak at a North Carolina high school. But first, there was a stop to stock the bus with candy, courtesy of a general store in Boone, NC.
During his maiden voyage on Ground Force One, a three-day bus tour through the midwest in August, the President managed to stop for pie, ice cream, popcorn, and more pie, among other duties, such as holding four town halls and a rural economic forum.
Information: Countryside Barbecue is at 2070 Rutherford Road, Marion, NC 28752-4822 Phone:
Sudsy photo-op: As Senate blocks American Jobs Act, the President toasts "to more jobs" with unemployed laborers... Beertrack voters could not be getting more attention from President Obama, who is brewing up support at every opportunity, with things like this and like this. In Orlando, Florida on Tuesday night for two campaign fundraisers, the Beermeister in Chief stopped off at the Harp and Celt Restaurant & Irish Pub on Magnolia Avenue and made a toast "to more jobs" with a group of unemployed construction workers (above).
Clad in his shirtsleeves, the President raised a pint of Guinness shortly after 7:00 PM, just as the Senate was demolishing his hopes for passage of the American Jobs Act.
"You guys are what this country's all about," Mr. Obama told the group of four, as they clinked their beer steins and said "to more jobs."
The White House released a backgrounder on the President's bar hop, because it was an orchestrated photo op to promote the idea that the jobs plan is good for infrastructure jobs. In fact, White House Communications Director Dan Pfeiffer tweeted:
"POTUS stopped at a bar in Orlando to have a beer with some unemployed workers -- while the GOP was voting to block the American Jobs Act."
The President chewed gum as he sat with his new pals at a wood table in the darkly-lit bar. There was a plate of half-eaten Nachos on the table between them, and bottles of half-empty Buds. Orlando Mayor Buddy Dyer was also part of the beery economic summit; President Obama queried the workers--three pipe fitters and one plumber--on their thoughts on the economy.
After being served his Guinness, the President examined it before raising it in his toast.
"Look at that," he said. "Now that looks good."
The President learned all about Guinness during his visit to his ancestral hometown of Moneygall, Ireland, last May. Dyer requested a Guinness, too, after spotting the President's. First Lady Obama had a different kind of Guinness moment on Tuesday, too.
Pool reported that President Obama's senior advisor Valerie Jarrett was sitting outside in a chair, talking on her cell phone. Obama campaign manager Jim Messina was standing outside one of the motorcade vehicles down the block. Done with his beer interlude, the President was in the motorcade and rolling to his next fundraiser at 7:30 pm.
WH backgrounder:
While in Orlando, President Obama stopped at the Harp and Celt Restaurant & Irish Pub and sat down with four unemployed construction workers who are looking to get back on the job to rebuild our nation’s infrastructure. The President talked with them about the importance of Congress passing the American Jobs Act to put folks back to work. President Obama was joined by Orlando Mayor Buddy Dyer during this stop.
Participants:
Michael Whidden, unemployed pipefitter from Gotha, FL Patricia Mooney-Hildebrand, unemployed pipefitter from Titusville, FL Mark Mckim, Unemployed plumber from Sanford, FL Jesse Morgan, unemployed pipefitter from Auburndale, FL ##
At Congressional Black Caucus Foundation's annual gala, President tells crowd to "stop complaining" and "put on your marching shoes"... President Obama spoke to a crowd of close to 3,000 on Saturday night at theCongressional Black Caucus Foundation's annual Phoenix Awards Dinner. From the stage of the cavernous, subterranean hall in the Washington Convention Center, the President gave an impassioned speech to try to recapture the affection of a group whose membership has in recent months been vocally critical of his policies. He touted his successes and laid the blame for his Administration's failures at the doorstep of the GOP. First Lady Obama, clad in a black evening gown by designer Michael Kors with the long sleeves pushed up, watched from the side of the dramatically lit stage. (Above: The First Couple entered to a standing ovation)
While admitting that in the last three years "the unemployment rate for black folks went up to nearly 17 percent -- the highest it’s been in almost three decades" and that almost forty percent of African American children live in poverty, the President recalled the hard-won successes of the civil rights era, quoting Dr. Martin Luther King, Jr., and he urged the CBC to work with him to pass the American Jobs Act.
"I expect all of you to march with me and press on," President Obama said. "Take off your bedroom slippers, put on your marching shoes. Shake it off. Stop complaining, stop grumbling, stop crying. We are going to press on. We’ve got work to do, CBC."
It was the President's third appearance at the event since taking office; he received his own Phoenix Award in 2008. Honorees included Lisa Jackson, the President's Environmental Protection Agency chief; Rep. John Lewis (D-GA); boxing legend and grill master George Edward Foreman, Sr; and civil rights leader Rev. Dr. Joseph E. Lowery, whom the President hailed during his remarks. (Above: The First Couple with from l CBC Chair Emanuel Cleaver II (D-MO); Lewis; Lowry; and CBC Foundation Chair Rep. Donald Payne (D-NJ))
Some notable guests were the Rev. Jesse Jackson; actor Cuba Gooding, Jr.; Rep. Charles Rangel; the Rev. Al Sharpton; and CNN's Roland Martin. Actor and activist Hill Harper and WJLA evening news anchor Maureen Bunyan served as co-emcees for the event.
The audience seemed very receptive to the President: After previously publicly chastising the President for ignoring black unemployment, Rep. Maxine Waters (D-CA) said recently that the CBC is now far more hopeful, thanks to the American Jobs Act. Waters heads the CBC's jobs task force. (Above: Foreman responds to the President's speech)
"He [President Obama] heard us. As a matter of fact we can see our hand print all over this proposal," Waters said of the AJA, in an interview with MSNBC. "We’re pleased about it."
In his remarks, the President also admitted that keeping faith in his Administration requires a bit of "craziness."
"You’ve got to be a little crazy to have faith during such hard times," President Obama said. "It’s heartbreaking, and it’s frustrating."
But the work must continue if African Americans are going to keep being part of the American Dream, the President said.
"Each night, when we tuck in our girls at the White House, I think about keeping that dream alive for them and for all of our children," President Obama said.
"Even when folks are hitting you over the head, you can’t stop marching. Even when they’re turning the hoses on you, you can’t stop. Even when somebody fires you for speaking out, you can’t stop. Even when it looks like there’s no way, you find a way -- you can’t stop," he said.
He closed by telling the crowd to stop complaining, and to "press on."
"I don’t know about you, CBC, but the future rewards those who press on," President Obama said. "With patient and firm determination, I am going to press on for jobs. I'm going to press on for equality. I'm going to press on for the sake of our children."
The President received a standing ovation as he finished.
"Leaving CBC Dinner, the President made a great speech. I told him it was a grand slam," Sharpton tweeted.
CLICK HEREfor the full transcript of the President's remarks. (Above: With Sharpton and Gooding in the crowd)
The President and Mrs. Obama shook hands along the ropeline for about ten minutes, and left without eating dinner, as is typical.
The First Couple arrived at the gala at 8:12 PM, and the motorcade was back at the White House at 9:32 PM. (Below: The President speaks with Rev. Jessie Jackson while greeting wellwishers in the ropeline)
Transcript: No mention of proposal to eliminate Direct Payments to farmers... Agriculture Secretary Tom Vilsack issued no statement on Monday after President Obama released his deficit reduction plan, which includes a proposal for some big changes and cuts to USDA programs. Instead, Vilsack today published a post on both the White House and USDA blogs, re-assuring America's hardworking farmers, ranchers and growers that the plan is good for the nation. The President's plan, Vilsack wrote, is bipartisan, and "sets us on a path to compete by asking everyone to pay their fair share, while investing in the innovation and economic opportunities we need to win the future." (Above: Vilsack holds a copy of the American Jobs Act, which is paid for under the President's proposal)
"The plan will strengthen our disaster assistance programs," Vilsack wrote. "After witnessing flood, drought, hurricanes, tornadoes and wildfires this year – I am even more certain of the importance of this component of the safety net."
Vilsack also praises plans to streamline crop insurance programs, as well as reduce federal subsidies to these, and he notes that the three percent budget cut proposed for conservation programs "challenges us to leverage our still-significant investments in conservation to attract more private sector investment." But the Secretary doesn't mention the elimination of Direct Payments to farmers, which could be the most contentious part of the President's proposal.
The Administration says more than 50 percent of Direct Payments go to farmers who earn $100,000 or more annually, whether or not they actually grow crops, and eliminating these payments will save $3 billion annually.
Direct Payments "a lot of times pay large farms for crops that they don't grow," President Obama said on Monday.
"Taxpayers continue to foot the bill" for farmers who "are experiencing record yields and prices," the Administration notes in the text of the President's plan.
Asking high-income Americans to "pay their fair share" is something the President and Administration officials have repeated over and over in recent weeks.
"This is not class warfare. It’s math," President Obama said on Monday. "The money is going to have to come from someplace. And if we’re not willing to ask those who've done extraordinarily well to help America close the deficit and we are trying to reach that same target of $4 trillion, then the logic, the math says everybody else has to do a whole lot more."
Under that thinking, eliminating Direct Payments is not Agri-class warfare, it's math.
The President's proposal got trounced on Monday in a joint statement from Representative Frank Lucas (R-OK), Chairman of the House Agriculture Committee, and Senator Pat Roberts (R-KS), Ranking Member of the Senate Agriculture Committee, but they didn't mention the elimination of Direct Payments, either. Download the President's full plan [PDF].
Vilsack's full blogpost:
Lessons From The Farm To Strengthen America
A week ago, President Obama released the American Jobs Act, a specific plan to jumpstart our economy and put Americans to work today. It contains ideas that both parties in Washington have supported. And yesterday, he laid out a plan that will pay for it – and for other long-term investments we need to stay competitive – while reducing our deficits.
His plan takes a balanced approach. It looks for savings across government. And it asks everyone to do their part and pay their fair share so we can live within our means.
For agriculture, the plan focuses on what the President and I believe is one of the most pressing challenges facing producers right now: maintaining a strong safety net and disaster assistance programs that will work for all farmers and ranchers, no matter what they produce or where.
The plan will strengthen our disaster assistance programs, which are currently set to run out of funding at the end of the month. It means that farmers knocked down by natural disaster can get their operations back on track. After witnessing flood, drought, hurricanes, tornadoes and wildfires this year – I am even more certain of the importance of this component of the safety net.
By modernizing our crop insurance program and making modest changes to the subsidy that crop insurance companies receive, we’ll make sure that we improve the programs and implement them more efficiently.
The plan proposes reducing conservation funding by 3 percent to help control the deficit. But it challenges us to leverage our still-significant investments in conservation to attract more private sector investment so we don’t lose ground in our effort to conserve soil and water resources.
Farmers and ranchers have worked over the years – especially following the farm crisis of the 1980s – to reduce their debt but thrive by investing wisely, adapting, innovating, and cutting back when necessary. Agriculture shows us that by investing wisely and cutting wisely, we can grow the economy for the long term, and get our country’s fiscal house in order.
The President’s plan follows that mold. It will invest to create jobs now, maintaining a strong safety net and creating a better market for our agricultural goods. And it sets us on a path to compete by asking everyone to pay their fair share, while investing in the innovation and economic opportunities we need to win the future. ##
*USDA photo by by Christopher Rolinson/StartPoint Media, Inc, taken at Point Park University in Pittsburgh, PA, on Friday, September 16, 2011.
Today the National Sustainable Agriculture Coalition issued a statement about President Obama's proposed cuts and changes to agriculture programs, unveiled Monday as part of his deficit reduction plan. The NSAC is an alliance of grassroots organizations that advocates for federal policy reform to advance the sustainability of agriculture, food systems, natural resources, and rural communities. Policy Director Ferd Hoefner issued the statement, which includes a letter [PDF] that will be sent to the Super Committee, as well as a nine-page documentthat details NSAC's 2012 Farm Bill Platform [PDF]. The GOP Ag response IS HERE.
NASC's statement:
Washington, D.C. September 20, 2011 -- The National Sustainable Agriculture Coalition urged the congressional deficit reduction or super committee today to take a policy and reform-oriented approach to reducing total farm bill spending while renewing investments in underfunded areas including new farmers, rural development, conservation, renewable energy, agricultural research, and new market development.
The NSAC letter to the Committee urged them to resist further cuts to farm conservation beyond the $2 billion Congress has already cut since the 2008 Farm Bill, to place hard caps on farm commodity and crop and revenue insurance subsidies, to end subsidies for the conversion of prime grasslands, to renew funding for critical mandatory farm bill programs that have no secured baselines after the end of the current farm bill cycle in 2012, and to protect anti-hunger programs from cuts.
A more detailed nine page document accompanies the letter and includes the full scope of the NSAC farm bill budget proposal.
NSAC Policy Director Ferd Hoefner contrasted the NSAC view with the farm bill cuts proposed by President Obama yesterday:
The Obama proposal holds promise, especially in the call for the end of direct payments. The farm bill cuts the President offered, however, are disproportionate to the size of the farm bill budget relative to total federal mandatory spending. In addition to the unfair size of the cut, the Administration proposal has three other problems.
First, the Administration would cut direct payments without offering a new alternative safety net proposal, even while proposing to leave a largely failed disaster program in place at a very substantial total cost equaling roughly half of the total savings. Disaster assistance should be built into the new safety net at a significantly lower cost, and eliminated as a free-standing program.
Second, all of the subsidies they do propose to leave in place are available without any effective limit on the size of the subsidy any one farm can receive. As such, they would focus the cuts on small and mid-sized farms, while allowing the largest farms continued access to the loopholes currently written into law to largely avoid the cuts that apply to everyone else.
Third, they do not take account of the dire need to put money into farm, food, and rural programs that create jobs, new business opportunities, and new healthy food options but that have shrinking or soon to be non-existent budgets.
The NSAC proposals by contrast would keep farm bill cuts at more equitable levels, target cuts so that the largest and wealthiest farms would actually have to contribute to deficit reduction, and align spending policies with widely supported public values with respect to increasing farm and rural economic opportunity, conserving natural resources and protecting the environment, and improving access to healthy food.
"The President turns a deaf ear to America’s farmers"... Representative Frank Lucas (R-OK), Chairman of the House Agriculture Committee, and Senator Pat Roberts (R-KS), Ranking Member of the Senate Agriculture Committee, today issued a joint statement in response to President Obama's deficit reduction plan, which includes changes and cuts to agriculture programs that will reduce the deficit by $33 billion, according to the Obama Administration.
"The President’s policy priorities reveal a lack of knowledge of production agriculture and fail to recognize how wholesale changes to farm policy would impact the people who feed us," Lucas and Roberts said. "The President does nothing to address waste, fraud, abuse, and other integrity issues within nutrition programs, which account for 80 percent of USDA spending."
House Agriculture Committee Ranking Member Collin C. Peterson (D-Minn) and Senate Agriculture Committee Chairman Debbie Stabenow (D-MI) did not issue statements about the President's plan.
Lucas and Roberts' full statement:
"The agriculture community remains willing to do its part in getting our fiscal house in order, but, in essence, President Obama’s plan for economic growth and deficit reduction is not credible.
The President’s policy priorities reveal a lack of knowledge of production agriculture and fail to recognize how wholesale changes to farm policy would impact the people who feed us. For example, cutting $8 billion from the crop insurance program puts the entire program at risk. We have heard again and again from producers that crop insurance is the best risk management tool available. In jeopardizing this program, the President turns a deaf ear to America’s farmers.
Meanwhile, SURE [the largest disaster aid program] has not worked as intended for most crops, but the President proposes extending it. The President only proposes a $2 billion cut, roughly three percent, to conservation despite his claim that conservation spending has increased 500 percent through the years. And, the President does nothing to address waste, fraud, abuse, and other integrity issues within nutrition programs, which account for 80 percent of USDA spending.
Ultimately, cuts to agriculture must reflect its diversity across the country, respect the challenges producers face, and preserve the tools necessary for food production."
Five-part plan for agriculture/rural cuts and changes proposed, because "Taxpayers continue to foot the bill" for farmers who "are experiencing record yields and prices," the Administration says... "Farmers represent the best of the American dream," President Obamadeclared on Friday. But this morning in the Rose Garden, the President revealed that farmers who have been living that dream with the help of federal agriculture subsidies will be out of luck under his new deficit proposal, which provides $2 trillion in changes to entitlement programs and tax increases over the next decade. Thanks to a booming Ag economy, Direct Payments to farmers are "no longer defensible" and will be eliminated, saving the Government $3 billion annually, according to the Administration. The President's plan also reduces subsidies to crop insurance companies; better targets agriculture conservation assistance; extends mandatory disaster assistance; and targets Medicare support for rural providers (all fully explained below). These measures will reduce the deficit by $33 billion, the Administration says. (Above: The President during his remarks)
"We reform agricultural subsidies--subsidies that a lot of times pay large farms for crops that they don't grow," President Obama said during his remarks. "We have to cut what we can’t afford to pay for what really matters."
The plan "pays for the President’s jobs bill and produces net savings of more than $3 trillion over the next decade, on top of the roughly $1 trillion in spending cuts that the President already signed into law in the Budget Control Act – for a total savings of more than $4 trillion over the next decade," the White House notes.
The President said that changing agriculture payments and other entitlements is crucial to balancing the budget and growing the economy; the plan, he said, "makes additional spending cuts that need to happen if we’re to solve this problem."
The President previously proposed capping agriculture subsidies in 2009, which was never enacted due to outrage from farm-state lawmakers and interest groups. Most recently, Mr. Obama discussed the need for capping ag subsidies during his Rural Economic Forum in August, in Iowa. Farmers who also happen to be millionaires will be subject to the President's proposed "Buffett Rule," a tax increase for those who earn more than seven figures annually, a crucial part of his plan to raise revenue. The President didn't offer details of the new rule, named for billionaire financier Warren Buffett, nor did Treasury Secretary Tim Geithner during a follow-up briefing with reporters. Download the President's full plan [PDF].
UPDATE, 5:30 PM: The GOP response to the agriculture proposals IS HERE.
1. Eliminating Direct Payments to farmers Eliminating Direct Payments to farmers will save the government $3 billion annually, the Administration says, and calls these payments "no longer defensible" thanks to recent boom years in the agriculture sector, which includes a net farm income forecast that is 31 percent higher than the 2010 level.
"Taxpayers continue to foot the bill" for farmers who "are experiencing record yields and prices," the Administration notes in the plan.
Direct payments provide producers with fixed annual income support payments for having historically planted crops that were supported by Government programs, regardless of whether the farmer is currently producing those crops—or producing any crop. Direct payments do not vary with prices, yields, or producers’ farm incomes. More than 50 percent of direct payments go to farmers who earn $100,000 or more annually, the Administration notes, and among other problems, these payments make it difficult for new farmers to purchase land.
"In a period of severe fiscal restraint, these payments are no longer defensible," the Administration says.
The Administration defends eliminating direct payments to farmers by noting that "Farm income has been high and continues to increase, with net farm income forecast to be $103.6 billion in 2011, up $24.5 billion (31 percent) from the 2010 forecast—the highest infla- tion-adjusted value for net farm income recorded in more than 35 years. The top five earnings years for the past three decades have occurred since 2004, attesting to the profitability of farming this decade."
2. Reduce subsidies to crop insurance companies Noting that "crop insurance is a foundation of our farm safety net," the Administration proposes "streamlining" administrative costs and changing the way crop insurance rates are calculated in order to save money. The Administration says that crop insurance is "highly subsidized" and costs the Government approximately $8 billion a year to run: $2.3 billion per year for the private insurance companies to administer and underwrite the program and $5.7 billion per year in premium subsidies to the farmers.
The President's proposal includes a four-pronged plan to trim this, with three points aimed at insurance companies, and one aimed at producers.
1. Lowering ROI: Crop insurance companies’ rate of return on investments should be reduced from 14 percent to 12 percent in order to save $2 billion over 10 years, according to the plan.
2. 2006 Cap level: Noting that the current cap on administrative expenses is based on 2010 premiums, which were among the highest ever, the Administration proposes a cap based on 2006 premiums.
"The Administration, therefore, proposes setting the cap at $0.9 billion adjusted annually for inflation, which would save $3.7 billion over 10 years."
3. More accurate pricing for CAT policies: The Administration proposes to price the premium for catastrophic (CAT) coverage policies more accurately, which will "slightly lower the reimbursement to crop insurance companies."
"The premium for CAT coverage is fully subsidized for the farmer, so the farmer is not im- pacted by the change. This change will save $600 million over 10 years."
4. Changing insurance subsidies for Producers: "Today, producers only pay 40 percent of the cost of their crop insurance premium on average, with the Government paying for the remainder," the Administration notes, and proposes to "shave two basis points off any coverage premium subsidy levels that are currently offered above 50 percent. This would save $2 billion over 10 years. Farmers who have premium subsidies of 50 percent or less would not be affected.
3. Better targeting for agricultural conservation assistance The Administration proposes to slash conservation funding by $2 billion over 10 years by better targeting funding to the most cost-effective and environmentally beneficial programs and practices.
While noting that private sector conservation efforts need to be supported, the Administration says that the 500 percent increase in funding since the 2002 Farm Security and Rural Investments Act has "led to difficulties in program administration and redundancies among our agricultural conservation programs." High crop prices have strengthened market opportunities for farmers, as well as decreased the need for government to fund conservation initiatives.
"Even under this proposal, conservation assistance is projected to grow by $60 billion over the next decade," the Administration notes.
4. Target Medicare support for rural providers The plan notes:
"Given the importance of Medicare to rural seniors, the program provides special payments to rural hospitals and doctors. Some of these payments, however, are not justified and threaten to undermine those that are. The proposal would better target Medicare’s Critical Access Hospital program and eliminate the new special add-on payments to providers in some, but not all, rural States – saving $6 billion over the next decade from the $60 billion Medicare is expected to spend on supplemental payments to rural providers."
5. Extend mandatory disaster assistance To be eligible for federal farm disaster aid for crop losses related to weather, insects, or other catastrophes, farmers will be required to purchase crop insurance. The full text of this component:
"The Administration strongly supports disaster assistance programs that protect farmers in their time of greatest need. The Food, Conservation, and Energy Act of 2008 provided producers with mandatory disaster assistance programs for the 2008 to 2011 crops. To strengthen the safety net, the Administration proposes to extend these programs, or similar types of disaster assistance that are of a similar cost, for the 2012 to 2016 crops.
The programs provide financial assistance to producers when they suffer actual losses in farm revenue, loss of livestock or the ability to graze their livestock, loss of trees in an orchard, and other losses due to diseases or adverse weather. To be eligible for the programs, farmers must purchase crop insurance. The Supplemental Revenue Assistance Program provides whole farm revenue coverage to farmers at a revenue level that is essentially 15 percent higher than their crop insurance guarantee. Payments are limited so that the guaranteed level cannot exceed 90 percent of expected farm income in the absence of a natural disaster." ##
Proposal includes $33 billion in savings from cutting agriculture subsidies, payments, and programs... UPDATE:The full details for proposed agriculture cutsARE HERE Ahead of President Obama's morning speech in the Rose Garden to unveil his new deficit reduction proposal, the White House released the following Fact Sheet with broad details. The President is sending this to the Super Committee, the bipartisan group of lawmakers charged with coming up with a deficit reduction plan before Thanksgiving. The President's plan pays for the American Jobs Act, and it includes "reforming agriculture subsidies," Mr. Obama said during his remarks. The White House Fact Sheet notes "$33 billion in savings from agriculture subsidies, payments, and programs," but gives no details about what this entails. President Obama discussed the need for capping agriculture subsidies during his Rural Economic Forum in August, in Iowa.
"Today I am laying out a set of specific proposals to finish what we started this summer," President Obama said.
The President's plan includes restructuring tax rates and closing loopholes, reforming Social Security and making "modest adjustments to Medicare and Medicaide" as well as cuts to other programs.
"Millionaires and billionaires have to pay their fair share" of taxes, the President said, once again referencing billionaire financier Warren Buffett's now-famous secretary.
The plan "pays for the President’s jobs bill and produces net savings of more than $3 trillion over the next decade, on top of the roughly $1 trillion in spending cuts that the President already signed into law in the Budget Control Act – for a total savings of more than $4 trillion over the next decade," the White House notes. The President's remarks:
White House Fact Sheet: Living Within Our Means and Investing in the Future - The President’s Plan for Economic Growth and Deficit Reduction
Overview The health of our economy depends on what we do right now to create the conditions where businesses can hire and middle-class families can feel a basic measure of economic security. In the long run, our prosperity also depends on our ability to pay down the massive debt the federal government has accumulated over the past decade. Today, the President sent to the Joint Committee his plan to jumpstart economic growth and job creation now – and to lay the foundation for it continue for years to come.
The President’s Plan for Economic Growth and Deficit Reduction lives up to a simple idea: as a Nation, we can live within our means while still making the investments we need to prosper – from a jobs bill that is needed right now to long-term investments in education, innovation, and infrastructure. It follows a balanced approach: asking everyone to do their part, so no one has to bear all the burden. And it says that everyone – including millionaires and billionaires – has to pay their fair share. Overall, it pays for the President’s jobs bill and produces net savings of more than $3 trillion over the next decade, on top of the roughly $1 trillion in spending cuts that the President already signed into law in the Budget Control Act – for a total savings of more than $4 trillion over the next decade. This would bring the country to a place, by 2017, where current spending is no longer adding to our debt, debt is falling as a share of the economy, and deficits are at a sustainable level.
The American Jobs Act Tax cuts to help businesses hire and grow
Cutting the payroll tax in half on the first $5 million in payroll, targeting the benefit to the 98 percent of firms with payroll below this threshold.
A complete payroll tax holiday for added workers or increased wages up to $50 million Extending 100 percent expensing into 2012.
Reforms and regulatory reductions to help entrepreneurs and small businesses access capital.
Putting workers back on the job while rebuilding and modernizing America.
A “Returning Heroes” hiring tax credit for veterans.
Preventing up to 280,000 teacher layoffs, while keeping cops and firefighters on the job
Immediate investments in infrastructure, school buildings, and neighborhoods as well as a bipartisan National Infrastructure Bank.
Pathways back to work for Americans looking for jobs The most innovative reform to the unemployment insurance program in 40 years and extension of emergency unemployment insurance preventing 6 million Americans looking for work from losing benefits.
A $4,000 tax credit to employers for hiring the long-term unemployed.
Prohibiting employers from discriminating against unemployed workers when hiring Expanding job opportunities for low-income youth and adults.
Tax relief for every American worker and family Cutting payroll taxes in half for 160 million workers next year.
Allowing more Americans to refinance their mortgages.
Fully paid for as part of the President’s long-term deficit reduction plan Paying for Our Investments and Reducing the Deficit
· The plan produces approximately $4.4 trillion in deficit reduction net the cost of the American Jobs Act.
o $1.2 trillion from the discretionary cuts enacted in the Budget Control Act.
o $580 billion in cuts and reforms to a wide range of mandatory programs;
o $1.1 trillion from the drawdown of troops in Afghanistan and transition from a military to a civilian-led mission in Iraq
o $1.5 trillion from tax reform
o $430 billion in additional interest savings
· To spur economic growth and job creation, the plan includes one-time investment and relief in the American Jobs Act. That adds to the deficit in 2012 but is fully paid for over 10 years, and deficit reduction phases in starting in 2013, as the economy grows stronger.
· Deficit reduction is achieved in a balanced approach, with a spending cut to revenue ratio for the entire plan (including discretionary cuts) of 2 to 1.
Deficits and Debt The Joint Committee plan significantly reduces deficits and puts the country on a fiscally sustainable path by 2017.
The deficit is projected to fall to 2.3 percent of GDP in 2021. By comparison, if we did nothing, the deficit would be 5.5 percent of GDP in 2021.
Reaches “primary balance”-- where our current spending is no longer adding to our debt -- in 2017. At that point, current spending is no longer adding to our debt, debt is falling as a share of the economy, and deficits are at a sustainable level.
The President’s plan would reduce the national debt as a share of economy Stable or falling debt as a share of the economy is a key metric of fiscal sustainability. If we did nothing, the national debt would rise to 90.7 percent of GDP in 2021. By contrast, under the President’s plan, the national debt would fall to 73.0 percent of GDP in 2021 -- or an improvement of almost 18 percentage points.
Health Savings The plan includes $320 billion in health savings that build on the Affordable Care Act to strengthen Medicare and Medicaid by reducing wasteful spending and erroneous payments, and supporting reforms that boost the quality of care. It accomplishes this in a way that does not shift significant risks onto the individuals they serve; slash benefits; or undermine the fundamental compact they represent to our Nation’s seniors, people with disabilities, and low-income families.
The plan includes $248 billion in savings from Medicare Within this total, 90 percent of the savings, or $224 billion, comes from reducing overpayments in Medicare.
Any savings that affect beneficiaries do not begin until 2017.
The plan does not propose to change the eligibility age for Medicare benefits.
Other health and Medicaid savings amount to $72 billion.
Because of the structural nature of these reforms, health savings grow to over $1 trillion in the second decade.
The President will veto any bill that takes one dime from the Medicare benefits seniors rely on without asking the wealthiest Americans and biggest corporations to pay their fair share.
Other Mandatory The plan includes $250 billion in savings from other mandatory programs. Included within these savings are:
$33 billion in savings from agriculture subsidies, payments, and programs
$42.5 billion in reforms to Federal employee benefit programs, including programs for civilian employees and military personnel.
$4.1 billion from the disposal of unused government assets.
$92.2 billion from restructuring government operations and reducing government liabilities.
$77.6 billion from improving Federal program management and reducing waste and abuse. Revenues
The President calls on the Committee to undertake comprehensive tax reform, and lays out five principles for it to follow: 1) lower tax rates; 2) cut wasteful loopholes and tax breaks; 3) reduce the deficit by $1.5 trillion; 4) boost job creation and growth; and 5) comport with the “Buffett Rule” that people making more than $1 million a year should not pay a smaller share of their income in taxes than middle-class families pay.
Tax reform should draw on the specific proposals the President has put forward, together with elimination of additional inefficient tax breaks. If the Joint Committee is unable to undertake comprehensive tax reform, the President believes the discrete measures he has proposed should be enacted on a standalone basis. Their enactment as a standalone package still would significantly improve the country’s fiscal standing, represent an important step toward more fundamentally transforming our tax code, and serve as a strong foundation for economic growth and job creation.
To advance this debate, the President is offering a detailed set of specific tax loophole closers and measures to broaden the tax base that, together with the expiration of the high-income tax cuts, would be more than sufficient to hit the $1.5 trillion target. These include:
Allowing the 2001 and 2003 tax cuts for upper income earners to expire ($866 billion) Limiting deductions and exclusions for those making more than $250,000 a year ($410 billion) Closing loopholes and eliminating special interest tax breaks (approximately $300 billion)
Download the bill here...and call, e-mail, fax, or send a message by skywriting to Congress, President says... In the Rose Garden on Monday morning, President Obama formally unveiled the $447 billion American Jobs Act. He was joined by Vice President Joe Biden and surrounded by police officers, firefighters, teachers, veterans, construction workers, and small business owners, all of whom will be impacted by the measure. He urged Americans to lobby Congress for immediate passage of the measure. (Above: The President holds up the bill during his remarks)
"I want you to pick up the phone. I want you to send an email. Use one of those airplane skywriters," President Obama said, to laughter. "Dust off the fax machine. Or you can just, like, write a letter. So long as you get the message to Congress: Send me the American Jobs Act so I can sign it into law. Let’s get something done. Let’s put this country back to work."
The bill is fully paid for, President Obama said. "It’s not going to add a dime to the deficit."
"This bill cuts taxes for small businesses that hire new employees and for small businesses that raise salaries for current employees. It cuts your payroll tax in half. And all businesses can write off investments they make this year and next year," President Obama said. "It’s got a $4,000 tax credit for companies that hire anybody who spent more than six months looking for a job."
The bill will preserve the jobs of those he was surrounded by in the Rose Garden, President Obama said, as well as create summer employment opportunities for impoverished youth, and rebuild critical infrastructure across the US, including schools.
"This is the bill that Congress needs to pass. No games. No politics. No delays," President Obama said. "I’m sending this bill to Congress today, and they ought to pass it immediately."
The President's remarks in the Rose Garden:
During an afternoon Q & A on the White House campus, President Obama answered questions about the AJA:
As Republicans battle proposed farm dust regulations from the Obama Administration, an Illinois farmer becomes a political symbol for the GOP... Illinois farmer Rock Katschnig interacted with President Obama last month at a town hall in Atkinson, Illinois, and he has become a GOP symbol for all that is wrong with the Obama Administration's efforts to create jobs. House Speaker John Boehner invitedKatschnig, a fourth generation corn and soy farmer, to sit with his dozen-plus guests in the House Gallery on Thursday evening to watch President Obama unveil the American Jobs Act. Boehner identified Katschnig and his other guests as "private-sector job creators" who are "American employers being hampered by excessive regulations from Washington." (Above: Boehner met with his guests before the President's speech; Katschnig is seated beside Boehner, in the blue tie)
In Illinois, Katschnig told President Obama that he was worried that proposed federal regulations for dust management, water run off and noise would "hinder" his farming business. The President essentially dismissed Katschnig's concerns, calling them "unfounded," and said "don't believe everything you hear." Of course Boehner has now adopted the farmer: He was ripe for the plucking, since he's from the President's homestate.
Boehner now features the farmer in a video on his website, in which Katschnig amplifies his dusty concerns. And the proposed "farm dust regulation" from the Environmental Protection Agency is getting major play from the GOP: It is number five on Majority Leader Eric Cantor's list of Top Ten Job Destroying Regulations.
In August, Cantor announced that he plans to add a vote on a dust bill in the House later this year, as part of the GOP's jobs agenda. Sen. Mike Johanns (R-Neb) and Sen. Charles Grassley (R-Iowa) have introduced a companion measure in the Senate.
Katschnig makes an appearance in Lucas' letter to EPA... On Thursday, House Agriculture Committee Chair Frank D. Lucas (R-OK-3) also got in on the dust-up, sending a letter to Environmental Protection Agency Administrator Lisa Jackson, requesting "a response to a list of questions from a bipartisan group of lawmakers that was submitted to her agency nearly six months ago." The letter includes a request for a statement on EPA's position on rural dust and other regulations--and also mentions the President's exchange with Katschnig.
"Our constituents are concerned that regulations under consideration on a variety of issues ranging from dust to gypsum will be costly, difficult to implement, and unworkable for farmers and ranchers," Lucas wrote to Jackson. "On a recent trip to Illinois, President Obama called these concerns “unfounded.” In testimony at our March 10, 2011 hearing on EPA regulations and agriculture, you mentioned “myths” about EPA’s intentions and said that mischaracterizations of your agency’s actions prevent 'real dialogue to address our greatest problems.'"
The EPA currently has more than 300 regulations under consideration, which could affect issues ranging from farm dust to federal jurisdiction over small streams and ponds, according to Lucas. He claims that by 2014, EPA regulations will cost Americans anywhere from $47 billion to $141 billion, and eliminate between 476 thousand and 1.4 million jobs.
Lucas asked Jackson for an immediate response to his query. The letter is here[PDF].
Grassley also issued a press release on farm dust.
“In each of my most recent town hall meetings, the excessive amount of regulations coming out of Washington, D.C. and the impact on small businesses and rural communities was a top issue,” Grassley said. “The dust rule is a perfect example. It makes no sense to regulate the dust coming out of a combine harvesting soybeans or the dust off a gravel road of a pick-up truck traveling into town. If the administration were to decide to revise the standard, farmers and livestock producers will likely be unable to attain the standard levels and the rural economy would be devastated.”
Meantime, Rep. Kristi Noem (R-S.D.) said in a press release that a bill she has introduced with Rep. Robert Hurt (R-VA), to stop EPA from implementing stricter dust standards, is gaining momentum, thanks to Cantor and Grassley.
“These developments are a clear indication that we’re gaining momentum for the commonsense idea that rural America, including South Dakota, doesn’t need any more dust regulation at this point,” Noem said.
Dust regulations are covered under EPA's Clean Air Act, which is reviewed every five years. EPA has issued no decision on what it plans to do with farm dust, urban dust, or other regulatory issues that Lucas and the rest of the GOP are focused on. It's a complicated calculation.
In a post todayon the White house blog, Agriculture Secretary Tom Vilsack hailed the American Jobs Act as a boon for farmers and rural Americans. There was no mention of farm dust or any other kind of agriculture regulations.
How Katschnig became Joe the Farmer... At the Atkinson town hall, President Obama was well meaning but a bit blithe as he answered Katschnig's query. Katschnig told the President he had "heard" that the Administration is planning new regulations for farming operations, and said he wasn't thrilled about this. (Above: President Obama speaking in Atkinson)
"Mother Nature has really challenged us this growing season -- moisture, drought, whatever," Katschnig said. "Please don’t challenge us with more rules and regulations from Washington, D.C., that hinder us from doing that. We would prefer to start our day in a tractor cab or combine cab rather than filling out forms and permits to do what we’d like to do."
"If you hear something is happening, but it hasn’t happened, don’t always believe what you hear," President Obama told Katschnig, and advised him to call USDA to get a response to his concerns.
Problem is, the regulations Katschnig was asking about are not questions USDA typically addresses, since they are under the rubric of EPA. The exchange between the farmer and the President made national headlines when a reporter from Politico took Mr. Obama's advice, and called USDA, It resulted in a ping-pong game of referrals to different offices--and no answer to the question.
Three days later, USDA spokesman Justin DeJong told the subscription-only The Hagstrom Report that the Department would be changing how it responds to farmers' queries--including those regarding EPA regulations. But DeJong declined to give specifics on what this would entail. When Obama Foodorama asked DeJong for further details, he again declined to elaborate.
So Katschnig was a ball ready to be played by the GOP. He could well become the Joe the Farmer for Campaign 2012, this election's version of Joe the Plumber, who is Samuel Joseph Wurzelbacher of Ohio. Wurzelbacher achieved national status after he queried Candidate Obama about small business tax policy during a 2008 campaign stop in Ohio. The McCain-Palin Campaign subsequently adopted the plumbing contractor as a metaphor for struggling middle-class Americans.
Katschnig’s video:
"One proposed regulation on “particulate matter” (dust) would devastate Katschnig’s industry and destroy many farming jobs," notes the blurb that accompanies Katschnig's video on Boehner's website.
UPDATE, Sept. 17, 2011: Katschnig story in GOP's Weekly Address, given by Rep. Peter Roskam
Rep. Peter Roskam (R-ILL-6) House Chief Deputy Whip, repeats Katschnig’s story at 2:48 in this video, in which he calls Washington "a red tape factory" producing regulations enforced by "unelected" "faceless" bureaucrats that will cost business owners millions in profits and inhibit job creation.
"One Illinois farmer stood up at a town hall meeting last month and pleaded with the president," Roskam says. "He said, 'please don't challenge us with more rules and regulations from Washington.' I couldn't have said it better myself. That farmer was one of several job creators who attended [the] president's speech to the Congress as guests of House Speaker John Boehner."
Roskam has also come out swinging against the Obama Administration for the proposed FTC voluntary principles for marketing foods to children, which he also claims will destroy jobs. A post about the issue IS HERE.
*Photo of Boehner from the Speaker's Office; photo of President Obama by Pete Souza/White House. Video from Speaker Boehner.
White House sends reporters more than fifty e-mails from lawmakers, political leaders, business CEOS and groups supporting President's American Jobs Act, but the country's largest grocer is missing in action... The White House rained forty-three e-mails into reporters' in boxes over the course of an hour and a half on Thursday night following President Obama's address to a Joint Session of Congress to unveil the American Jobs Act. The storm of e-mails--all in support of the President's plan--began anew this morning, at 6:51 AM, starting with a message from Michigan Governor Rick Snyder. By late afternoon, there were thirteen new statements of support. But there's one major voice missing from all these e-mails: Grocery giant Walmart. The company is both the largest grocery chain in the US, and the largest private employer in America, with more than 1.1 million workers. It has also created a huge partnership with the White House for First Lady Obama's Let's Move! campaign. (Above: Mrs. Obama speaking at the event unveiling the partnership)
The e-mails sent from the White house all laud the President's $450 billion measure, and include missives from Members of Congress, Governors, Mayors, interest groups like the Center for American Progress, organized labor (the AFL-CIO; the United Food and Commercial Workers International Union, SEIU, to name three); educational groups, construction groups. The high-profile business CEOs who were invited to sit with Mrs. Obama to watch the President speak also issued statements, including General Electric CEO Jeffrey Immelt; American Express CEO & Chair Kenneth Chenault; and Steve Case, CEO of Revolution and co-founder of AOL.
But no one from the Bentonville, Arkansas-based Walmart has said a word about the President's jobs plan, though CEO Mike Duke has met with the President numerous times at the White House. Leslie Dach, Executive VP of Corporate Affairs, joined Mrs. Obama at an event at the White House in July to unveil a pledge to build up to 300 Walmart stores in areas identified as "food deserts." Walmart President Bill Simon joined Mrs. Obama in Washington to first announce the company's partnership with the Let's Move! campaign.
Many of the President's proposals--for payroll taxcuts and other job-creating initiatives--would have an impact on Walmart and its employees. The company is non-Union--or aggressively anti-Union, if you believe its critics--and organized labor is highly enthusiastic about the President's new plan. What's Walmart's position on the American Jobs Act? It's ridiculous to even guess.
But the First Lady has realistically pointed out that the White House Walmart partnership will be a big business economic booster for America's largest grocery chain.
"This is a business move for them and we know it. They said more of their customers are coming and looking for healthier options because fortunately demand is changing," Mrs. Obama told her print reporters during a luncheon in Feburary.
Perhaps the American Jobs Act is one "partnership" Walmart is not interested in.
Above: A screenshot of just some of the emails sent on Thursday night. *Photo by Eddie Gehman Kohan/Obama Foodorama
President Obama made only a single specific reference to rural issues and agriculture as he unveiled the American Jobs Act during his address to a Joint Session of Congress on Thursday evening, despite the fact that he spent three days in August on a bus tour through Minnesota, Iowa and Illinois to promote rural job creation. But today on the White House blog, Agriculture Secretary Tom Vilsack explains that the President's $450 billion measure is good for the heartland. The President's proposal includes a major rebuild for America's transportation infrastructure, and this is terrific news for rural America, Vilsack says.
As for the President's mention of agriculture? Mr. Obama cited President Abraham Lincoln at the end of his speech, as an example of bipartisanship that should be replicated today. He didn't note that Lincoln founded the Department of Agriculture in 1862, but rather pointed to the educational institutions that are part of that legacy.
“We all remember Abraham Lincoln as the leader who saved our union,” President Obama said. “But in the middle of a civil war, he was also a leader who looked to the future — a Republican president who mobilized government to build the transcontinental railroad; launch the National Academy of Sciences; and set up the first land grant colleges. And leaders of both parties have followed the example he set.”
The Secretary's blogpost:
Last night, I went to the Capitol to hear the President address Congress about the way forward to grow the economy and create jobs.
There is no doubt that these have been tough times. And it’s very tough for the many Americans who are looking for work. So we’ve got to keep finding ways to help the unemployed in the short term and rebuild the middle class over the long term.
The American Jobs Act that President Obama laid out this evening will have an immediate impact. It will create jobs now. And it is based on bipartisan ideas that both Democrats and Republicans have supported in the past.
Americans living in rural communities know well that the specific ideas in the bill work. Too many of rural areas are dealing with crumbling infrastructure. They know the benefits of rebuilding local roads, or of improving their water system. And our rural construction workers are ready to get back on the job.
The small businesses that employee most rural Americans know that the tax cuts in the bill will mean more work, so they can expand and hire. And every working rural family will benefit from money back in their pockets.
Small rural governments know they can use the support to keep folks on payroll. Teachers, firefighters and other first responders need to be kept on the job preparing our children for a better future and keeping our families safe.
Most importantly, folks in rural America know that in difficult times, we need to come together to hammer out a solution that benefits everyone. And elected leaders in Washington need to do the same as they work to support job growth and build a stronger future for all Americans. ## *Photo of President Obama during his remarks on Thursday by Getty
Transcript & video of President's address to a Joint Session of Congress... President Obama addressed a Joint Session of Congress on Thursday evening to unveil the $447 billion American Jobs Act, a measure he hailed as a bipartisan initiative to "jolt" the economy out of recession. The Fact Sheet is here. Twenty-three guests were invited to join First Lady Obama in her box to watch the speech; the guest list is here.(Above: The President during his remarks)
The President's address was streamed on Whitehouse.gov, "enhanced" with graphics and charts explaining his plan.
The enhanced version of the President's address:
The unenhanced version:
The transcript:
THE WHITE HOUSE Office of the Press Secretary __________________________________________
For Immediate Release September 8, 2011
ADDRESS BY THE PRESIDENT TO A JOINT SESSION OF CONGRESS
United States Capitol Washington, D.C.
7:09 P.M. EDT
THE PRESIDENT: Mr. Speaker, Mr. Vice President, members of Congress, and fellow Americans:
Tonight we meet at an urgent time for our country. We continue to face an economic crisis that has left millions of our neighbors jobless, and a political crisis that’s made things worse.
This past week, reporters have been asking, “What will this speech mean for the President? What will it mean for Congress? How will it affect their polls, and the next election?”
But the millions of Americans who are watching right now, they don’t care about politics. They have real-life concerns. Many have spent months looking for work. Others are doing their best just to scrape by -- giving up nights out with the family to save on gas or make the mortgage; postponing retirement to send a kid to college.
These men and women grew up with faith in an America where hard work and responsibility paid off. They believed in a country where everyone gets a fair shake and does their fair share -- where if you stepped up, did your job, and were loyal to your company, that loyalty would be rewarded with a decent salary and good benefits; maybe a raise once in a while. If you did the right thing, you could make it. Anybody could make it in America.
For decades now, Americans have watched that compact erode. They have seen the decks too often stacked against them. And they know that Washington has not always put their interests first.
The people of this country work hard to meet their responsibilities. The question tonight is whether we’ll meet ours. The question is whether, in the face of an ongoing national crisis, we can stop the political circus and actually do something to help the economy. (Applause.) The question is -- the question is whether we can restore some of the fairness and security that has defined this nation since our beginning.
Those of us here tonight can’t solve all our nation’s woes. Ultimately, our recovery will be driven not by Washington, but by our businesses and our workers. But we can help. We can make a difference. There are steps we can take right now to improve people’s lives.
I am sending this Congress a plan that you should pass right away. It’s called the American Jobs Act. 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 -- including many who sit here tonight. And everything in this bill will be paid for. Everything. (Applause.)
The purpose of the American Jobs Act is simple: to put more people back to work and more money in the pockets of those who are working. It will create more jobs for construction workers, more jobs for teachers, more jobs for veterans, and more jobs for long-term unemployed. (Applause.) It will provide -- it will provide a tax break for companies who hire new workers, and it will cut payroll taxes in half for every working American and every small business. (Applause.) It will provide a jolt to an economy that has stalled, and give companies confidence that if they invest and if they hire, there will be customers for their products and services. You should pass this jobs plan right away. (Applause.)
Everyone here knows that small businesses are where most new jobs begin. And you know that while corporate profits have come roaring back, smaller companies haven’t. So for everyone who speaks so passionately about making life easier for “job creators,” this plan is for you. (Applause.)
Pass this jobs bill -- pass this jobs bill, and starting tomorrow, small businesses will get a tax cut if they hire new workers or if they raise workers’ wages. Pass this jobs bill, and all small business owners will also see their payroll taxes cut in half next year. (Applause.) If you have 50 employees -- if you have 50 employees making an average salary, that’s an $80,000 tax cut. And all businesses will be able to continue writing off the investments they make in 2012.
It’s not just Democrats who have supported this kind of proposal. Fifty House Republicans have proposed the same payroll tax cut that’s in this plan. You should pass it right away. (Applause.)
Pass this jobs bill, and we can put people to work rebuilding America. Everyone here knows we have badly decaying roads and bridges all over the country. Our highways are clogged with traffic. Our skies are the most congested in the world. It’s an outrage.
Building a world-class transportation system is part of what made us a economic superpower. And now we’re going to sit back and watch China build newer airports and faster railroads? At a time when millions of unemployed construction workers could build them right here in America? (Applause.)
There are private construction companies all across America just waiting to get to work. There’s a bridge that needs repair between Ohio and Kentucky that’s on one of the busiest trucking routes in North America. A public transit project in Houston that will help clear up one of the worst areas of traffic in the country. And there are schools throughout this country that desperately need renovating. How can we expect our kids to do their best in places that are literally falling apart? This is America. Every child deserves a great school -- and we can give it to them, if we act now. (Applause.)
The American Jobs Act will repair and modernize at least 35,000 schools. It will put people to work right now fixing roofs and windows, installing science labs and high-speed Internet in classrooms all across this country. It will rehabilitate homes and businesses in communities hit hardest by foreclosures. It will jumpstart thousands of transportation projects all across the country. And to make sure the money is properly spent, we’re building on reforms we’ve already put in place. No more earmarks. No more boondoggles. No more bridges to nowhere. We’re cutting the red tape that prevents some of these projects from getting started as quickly as possible. And we’ll set up an independent fund to attract private dollars and issue loans based on two criteria: how badly a construction project is needed and how much good it will do for the economy. (Applause.)
This idea came from a bill written by a Texas Republican and a Massachusetts Democrat. The idea for a big boost in construction is supported by America’s largest business organization and America’s largest labor organization. It’s the kind of proposal that’s been supported in the past by Democrats and Republicans alike. You should pass it right away. (Applause.)
Pass this jobs bill, and thousands of teachers in every state will go back to work. These are the men and women charged with preparing our children for a world where the competition has never been tougher. But while they’re adding teachers in places like South Korea, we’re laying them off in droves. It’s unfair to our kids. It undermines their future and ours. And it has to stop. Pass this bill, and put our teachers back in the classroom where they belong. (Applause.)
Pass this jobs bill, and companies will get extra tax credits if they hire America’s veterans. We ask these men and women to leave their careers, leave their families, risk their lives to fight for our country. The last thing they should have to do is fight for a job when they come home. (Applause.)
Pass this bill, and hundreds of thousands of disadvantaged young people will have the hope and the dignity of a summer job next year. And their parents -- (applause) -- their parents, low-income Americans who desperately want to work, will have more ladders out of poverty.
Pass this jobs bill, and companies will get a $4,000 tax credit if they hire anyone who has spent more than six months looking for a job. (Applause.) We have to do more to help the long-term unemployed in their search for work. This jobs plan builds on a program in Georgia that several Republican leaders have highlighted, where people who collect unemployment insurance participate in temporary work as a way to build their skills while they look for a permanent job. The plan also extends unemployment insurance for another year. (Applause.) If the millions of unemployed Americans stopped getting this insurance, and stopped using that money for basic necessities, it would be a devastating blow to this economy. Democrats and Republicans in this chamber have supported unemployment insurance plenty of times in the past. And in this time of prolonged hardship, you should pass it again -- right away. (Applause.)
Pass this jobs bill, and the typical working family will get a $1,500 tax cut next year. Fifteen hundred dollars that would have been taken out of your pocket will go into your pocket. This expands on the tax cut that Democrats and Republicans already passed for this year. If we allow that tax cut to expire -- if we refuse to act -- middle-class families will get hit with a tax increase at the worst possible time. We can’t let that happen. I know that some of you have sworn oaths to never raise any taxes on anyone for as long as you live. Now is not the time to carve out an exception and raise middle-class taxes, which is why you should pass this bill right away. (Applause.)
This is the American Jobs Act. It will lead to new jobs for construction workers, for teachers, for veterans, for first responders, young people and the long-term unemployed. It will provide tax credits to companies that hire new workers, tax relief to small business owners, and tax cuts for the middle class. And here’s the other thing I want the American people to know: The American Jobs Act will not add to the deficit. It will be paid for. And here’s how. (Applause.)
The agreement we passed in July will cut government spending by about $1 trillion over the next 10 years. It also charges this Congress to come up with an additional $1.5 trillion in savings by Christmas. Tonight, I am asking you to increase that amount so that it covers the full cost of the American Jobs Act. And a week from Monday, I’ll be releasing a more ambitious deficit plan -- a plan that will not only cover the cost of this jobs bill, but stabilize our debt in the long run. (Applause.)
This approach is basically the one I’ve been advocating for months. In addition to the trillion dollars of spending cuts I’ve already signed into law, it’s a balanced plan that would reduce the deficit by making additional spending cuts, by making modest adjustments to health care programs like Medicare and Medicaid, and by reforming our tax code in a way that asks the wealthiest Americans and biggest corporations to pay their fair share. (Applause.) What’s more, the spending cuts wouldn’t happen so abruptly that they’d be a drag on our economy, or prevent us from helping small businesses and middle-class families get back on their feet right away.
Now, I realize there are some in my party who don’t think we should make any changes at all to Medicare and Medicaid, and I understand their concerns. But here’s the truth: Millions of Americans rely on Medicare in their retirement. And millions more will do so in the future. They pay for this benefit during their working years. They earn it. But with an aging population and rising health care costs, we are spending too fast to sustain the program. And if we don’t gradually reform the system while protecting current beneficiaries, it won’t be there when future retirees need it. We have to reform Medicare to strengthen it. (Applause.)
I am also -- I’m also well aware that there are many Republicans who don’t believe we should raise taxes on those who are most fortunate and can best afford it. But here is what every American knows: While most people in this country struggle to make ends meet, a few of the most affluent citizens and most profitable corporations enjoy tax breaks and loopholes that nobody else gets. Right now, Warren Buffett pays a lower tax rate than his secretary -- an outrage he has asked us to fix. (Laughter.) We need a tax code where everyone gets a fair shake and where everybody pays their fair share. (Applause.) And by the way, I believe the vast majority of wealthy Americans and CEOs are willing to do just that if it helps the economy grow and gets our fiscal house in order.
I’ll also offer ideas to reform a corporate tax code that stands as a monument to special interest influence in Washington. By eliminating pages of loopholes and deductions, we can lower one of the highest corporate tax rates in the world. (Applause.) Our tax code should not give an advantage to companies that can afford the best-connected lobbyists. It should give an advantage to companies that invest and create jobs right here in the United States of America. (Applause.)
So we can reduce this deficit, pay down our debt, and pay for this jobs plan in the process. But in order to do this, we have to decide what our priorities are. We have to ask ourselves, “What’s the best way to grow the economy and create jobs?”
Should we keep tax loopholes for oil companies? Or should we use that money to give small business owners a tax credit when they hire new workers? Because we can’t afford to do both. Should we keep tax breaks for millionaires and billionaires? Or should we put teachers back to work so our kids can graduate ready for college and good jobs? (Applause.) Right now, we can’t afford to do both.
This isn’t political grandstanding. This isn’t class warfare. This is simple math. (Laughter.) This is simple math. These are real choices. These are real choices that we’ve got to make. And I’m pretty sure I know what most Americans would choose. It’s not even close. And it’s time for us to do what’s right for our future. (Applause.)
Now, the American Jobs Act answers the urgent need to create jobs right away. But we can’t stop there. As I’ve argued since I ran for this office, we have to look beyond the immediate crisis and start building an economy that lasts into the future -- an economy that creates good, middle-class jobs that pay well and offer security. We now live in a world where technology has made it possible for companies to take their business anywhere. If we want them to start here and stay here and hire here, we have to be able to out-build and out-educate and out-innovate every other country on Earth. (Applause.)
And this task of making America more competitive for the long haul, that’s a job for all of us. For government and for private companies. For states and for local communities -- and for every American citizen. All of us will have to up our game. All of us will have to change the way we do business.
My administration can and will take some steps to improve our competitiveness on our own. For example, if you’re a small business owner who has a contract with the federal government, we’re going to make sure you get paid a lot faster than you do right now. (Applause.) We’re also planning to cut away the red tape that prevents too many rapidly growing startup companies from raising capital and going public. And to help responsible homeowners, we’re going to work with federal housing agencies to help more people refinance their mortgages at interest rates that are now near 4 percent. That’s a step -- (applause) -- I know you guys must be for this, because that’s a step that can put more than $2,000 a year in a family’s pocket, and give a lift to an economy still burdened by the drop in housing prices.
So, some things we can do on our own. Other steps will require congressional action. Today you passed reform that will speed up the outdated patent process, so that entrepreneurs can turn a new idea into a new business as quickly as possible. That’s the kind of action we need. Now it’s time to clear the way for a series of trade agreements that would make it easier for American companies to sell their products in Panama and Colombia and South Korea -– while also helping the workers whose jobs have been affected by global competition. (Applause.) If Americans can buy Kias and Hyundais, I want to see folks in South Korea driving Fords and Chevys and Chryslers. (Applause.) I want to see more products sold around the world stamped with the three proud words: “Made in America.” That’s what we need to get done. (Applause.)
And on all of our efforts to strengthen competitiveness, we need to look for ways to work side by side with America’s businesses. That’s why I’ve brought together a Jobs Council of leaders from different industries who are developing a wide range of new ideas to help companies grow and create jobs.
Already, we’ve mobilized business leaders to train 10,000 American engineers a year, by providing company internships and training. Other businesses are covering tuition for workers who learn new skills at community colleges. And we’re going to make sure the next generation of manufacturing takes root not in China or Europe, but right here, in the United States of America. (Applause) If we provide the right incentives, the right support -- and if we make sure our trading partners play by the rules -- we can be the ones to build everything from fuel-efficient cars to advanced biofuels to semiconductors that we sell all around the world. That’s how America can be number one again. And that’s how America will be number one again. (Applause.)
Now, I realize that some of you have a different theory on how to grow the economy. Some of you sincerely believe that the only solution to our economic challenges is to simply cut most government spending and eliminate most government regulations. (Applause.)
Well, I agree that we can’t afford wasteful spending, and I’ll work with you, with Congress, to root it out. And I agree that there are some rules and regulations that do put an unnecessary burden on businesses at a time when they can least afford it. (Applause.) That’s why I ordered a review of all government regulations. So far, we’ve identified over 500 reforms, which will save billions of dollars over the next few years. (Applause.) We should have no more regulation than the health, safety and security of the American people require. Every rule should meet that common-sense test. (Applause.)
But what we can’t do -- what I will not do -- is let this economic crisis be used as an excuse to wipe out the basic protections that Americans have counted on for decades. (Applause.) I reject the idea that we need to ask people to choose between their jobs and their safety. I reject the argument that says for the economy to grow, we have to roll back protections that ban hidden fees by credit card companies, or rules that keep our kids from being exposed to mercury, or laws that prevent the health insurance industry from shortchanging patients. I reject the idea that we have to strip away collective bargaining rights to compete in a global economy. (Applause.) We shouldn’t be in a race to the bottom, where we try to offer the cheapest labor and the worst pollution standards. America should be in a race to the top. And I believe we can win that race. (Applause.)
In fact, this larger notion that the only thing we can do to restore prosperity is just dismantle government, refund everybody’s money, and let everyone write their own rules, and tell everyone they’re on their own -- that’s not who we are. That’s not the story of America.
Yes, we are rugged individualists. Yes, we are strong and self-reliant. And it has been the drive and initiative of our workers and entrepreneurs that has made this economy the engine and the envy of the world.
But there’s always been another thread running throughout our history -- a belief that we’re all connected, and that there are some things we can only do together, as a nation.
We all remember Abraham Lincoln as the leader who saved our Union. Founder of the Republican Party. But in the middle of a civil war, he was also a leader who looked to the future -- a Republican President who mobilized government to build the Transcontinental Railroad -- (applause) -- launch the National Academy of Sciences, set up the first land grant colleges. (Applause.) And leaders of both parties have followed the example he set.
Ask yourselves -- where would we be right now if the people who sat here before us decided not to build our highways, not to build our bridges, our dams, our airports? What would this country be like if we had chosen not to spend money on public high schools, or research universities, or community colleges? Millions of returning heroes, including my grandfather, had the opportunity to go to school because of the G.I. Bill. Where would we be if they hadn’t had that chance? (Applause.)
How many jobs would it have cost us if past Congresses decided not to support the basic research that led to the Internet and the computer chip? What kind of country would this be if this chamber had voted down Social Security or Medicare just because it violated some rigid idea about what government could or could not do? (Applause.) How many Americans would have suffered as a result?
No single individual built America on their own. We built it together. We have been, and always will be, one nation, under God, indivisible, with liberty and justice for all; a nation with responsibilities to ourselves and with responsibilities to one another. And members of Congress, it is time for us to meet our responsibilities. (Applause.)
Every proposal I’ve laid out tonight is the kind that’s been supported by Democrats and Republicans in the past. Every proposal I’ve laid out tonight will be paid for. And every proposal is designed to meet the urgent needs of our people and our communities.
Now, I know there’s been a lot of skepticism about whether the politics of the moment will allow us to pass this jobs plan -- or any jobs plan. Already, we’re seeing the same old press releases and tweets flying back and forth. Already, the media has proclaimed that it’s impossible to bridge our differences. And maybe some of you have decided that those differences are so great that we can only resolve them at the ballot box.
But know this: 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. (Applause.) Some of them are living week to week, paycheck to paycheck, even day to day. They need help, and they need it now.
I don’t pretend that this plan will solve all our problems. It should not be, nor will it be, the last plan of action we propose. What’s guided us from the start of this crisis hasn’t been the search for a silver bullet. It’s been a commitment to stay at it -- to be persistent -- to keep trying every new idea that works, and listen to every good proposal, no matter which party comes up with it.
Regardless of the arguments we’ve had in the past, regardless of the arguments we will have in the future, this plan is the right thing to do right now. You should pass it. (Applause.) And I intend to take that message to every corner of this country. (Applause.) And I ask -- I ask every American who agrees to lift your voice: Tell the people who are gathered here tonight that you want action now. Tell Washington that doing nothing is not an option. Remind us that if we act as one nation and one people, we have it within our power to meet this challenge.
President Kennedy once said, “Our problems are man-made –- therefore they can be solved by man. And man can be as big as he wants.”
These are difficult years for our country. But we are Americans. We are tougher than the times we live in, and we are bigger than our politics have been. So let’s meet the moment. Let’s get to work, and let’s show the world once again why the United States of America remains the greatest nation on Earth. (Applause.)
Thank you very much. God bless you, and God bless the United States of America. (Applause.)
Ahead of tax-break speech, an eat n' meet with "a middle class family"...
