Senate ready to tackle jobs

By Tami Luhby, senior writer


NEW YORK (CNNMoney.com) -- Senate Democrats are expected to take up President Obama's call and start rolling out their employment creation package by week's end.

With the balance of power shifted in the Senate, Democrats have moved away from introducing a comprehensive bill similar to the $154 billion legislation passed by the House in December. Instead, the Democrats will likely push through smaller measures in stages.

"First of all, we do not have a jobs bill," said Senate Majority Leader Harry Reid, D-Nevada, on Tuesday. "We have a jobs agenda that we're working on."

At the top of the list: Renewing existing highway legislation for a year, which is expected to result in one million jobs, Reid said. Also, enacting small business and job creation tax credits. And extending Build America Bonds, a stimulus measure that helps states and municipalities fund capital construction projects.

The president's fiscal 2011 budget, unveiled Monday, would direct $50 billion to job creation measures, including clean energy initiatives and road projects.

"Infrastructure is where the jobs are, and we need to move in that direction rapidly," Reid said.

Coming next: Enacting the president's Cash for Caulkers proposal, which would subsidize making homes and buildings more energy efficient, and extending the stimulus grants for surface transportation.

The first job creation bill was unveiled on Wednesday. The measure, promoted by Sens. Charles Schumer, D-N.Y., and Orrin Hatch, R-Utah, would absolve any private-sector employer who hires a worker who's been unemployed for at least 60 days of paying the 6.2% share of the employee's Social Security payroll tax for the rest of 2010.

Also, employers who keep these workers on the payroll continuously for a year would be eligible for a non-refundable $1,000 tax credit on their 2011 tax returns.

"This proposal isn't about more and more government spending; it's about tax relief to get employers hiring again," Hatch said.

Democrats' other measures, however, aren't likely to get as warm a reception from the GOP. Already, several Republican senators have come out against using TARP bank bailout funds to jumpstart lending to small businesses and raising taxes on the wealthy.

"If you're in business now and you're trying to figure out what the future is, you're looking at health care taxes, you're looking at capital gains taxes going up, dividend taxes going up," Senate Republican Leader Mitch McConnell of Kentucky said on CNN's State of the Union on Sunday. "If you are a small business and pay taxes as an individual taxpayer, your taxes are going up. So, is that a great environment in which to expand employment? I think the answer is no."

Since Obama outlined his job creation push in his State of the Union speech last week, he has traveled up and down the East Coast promoting his small business initiatives. These include jumpstarting small business lending by giving $30 billion in TARP funds to banks and providing these firms with a $5,000 tax credit for each addition to their payrolls.

"Today, one in 10 Americans still can't find work," Obama said in Nashua, N.H., on Tuesday. "That's why jobs has to be our number one focus in 2010. And we're going to start where most new jobs start -- with small businesses." To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 24,461.70 -196.10 -0.80%
Nasdaq 7,712.95 -68.56 -0.88%
S&P 500 2,749.76 -17.56 -0.63%
Treasuries 2.90 0.00 0.00%
Data as of 2:44am ET
Company Price Change % Change
Advanced Micro Devic... 15.65 -0.87 -5.27%
General Electric Co 12.76 -0.12 -0.93%
Micron Technology In... 59.44 0.49 0.83%
Bank of America Corp... 29.29 0.05 0.17%
AT&T Inc 31.60 -0.40 -1.25%
Data as of Jun 21
Sponsors

Sections

US Starbucks stores are bugged by drinks no one wants, too many stores and not enough innovation. More

Russian trolls posing as an American college student tweeted about divisive social, political and cultural issues using an account that amassed thousands of followers -- and appeared in dozens of news stories published by major media outlets -- as recently as March. More

Thinking of splashing out a lot of money on fancy new car or dream vacation? Ask yourself these six questions to avoid financial chaos. More