Senators have given final passage to the Hiring Incentives to Restore Employment (HIRE) Act (H.R. 2847) by a vote of 70 to 28. In short, this is Majority Leader Harry Reid’s (D-NV) “jobs package.”
Prior to final passage, the Senate agreed to waive any applicable budget points of order against the legislation (including a violation of PAYGO rules) by a vote of 62 to 34. Sixty votes were needed on the motion to waive.
A note from Minority Leader Mitch McConnell’s (R-KY) office states that the jobs bill “would increase the on-budget deficit for the sum of the years 2010 to 2014.” Budget Committee Ranking Member Judd Gregg (R-NH) raised this violation. Democrats argue that the bill is paid for, but just not in that immediate time-frame.
Here are some key aspects of the legislation, per the AP:
- Hiring tax incentives — Exempts employers from paying the 6.2 percent Social Security payroll tax this year on newly hired workers that have been unemployed for 60 days or more. Provides additional $1,000 tax credit for workers retained for at least a year. Cost: $13 billion.
- Highway programs — Reauthorizes through the end of 2010 the highway trust fund to use gasoline taxes to help state and local governments pay for highway and transit projects. Deposits an additional $20 billion into the trust fund.
- Equipment write-offs — Permits businesses to write off equipment purchases as a business expense rather than depreciating them over time. Cost: $35 million.
- Build America Bonds — Expands the Build America Bonds program to subsidize the interest costs of bonds for include certain school and energy projects. Cost: $2.3 billion.
(credit image – founder blog)
Congress in Your Pocket
