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Senate Rejects Infrastructure Jobs Bill; Senate Democrats Move on to Vets Jobs Bill

Tax

By Ron Kramer

On November 3, the Senate rejected a motion to take up another piece of President’s Obama’s job bill by voting 51 to 49 on the measure. Since the vote failed to receive the needed 60 votes to move on, the measure was defeated. All 47 Republicans voted “no,” and they were joined by one Democrat and one Independent in defeating the measure.

The measure, titled Rebuild America Jobs Bill (S.1769), proposed investing $50 billion in infrastructure projects and another $10 billion for an infrastructure bank. Democrats proposed paying for the bill with a 0.7 percent surtax on taxpayers with annual incomes over $1 million.

On November 4, Senate Democrats announced that they will propose a third piece of the bill that would provide tax credits for employers who hire unemployed veterans and veterans who have service-related disabilities.

The proposal would provide the following credits for employers who hire military veterans:

  • $5,600 – for veterans who have been looking for work for more than 6 months
  • $2,400 – for veterans who have been unemployed for more than 4 weeks but less than 6 months 
  • $9,600 – for veterans with service-related disabilities that have been looking for work for more than 6 months.

This portion of the jobs bills could likely garner more bi-partisan support than many of the “Stimulus II” like provisions of President Obama’s job bill. However, the key sticking point will be how the legislation would be paid for. All of the previous Democratic proposals have included some percentage of a surtax on wealthy Americans that have been rejected by Republicans and some Democrats and Independents.

We will see how this proposal rolls out during this Veterans Day week.

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