A lot of the money to pay for the jobs plan will hit the same pockets the super committee was looking to pick. I imagine the President’s infrastructure bank will be in his plan.
Jack Lew, Chair of the WH Office of Management and Budget, suggested today, Tuesday, that the jobs plan will be paid for by the richest Americans – $200,000 for individuals and $250,000 for families, which is a lower threshold than promised.
The President’s plan includes: 1. New limits on deductions for income over $250,000. This would raise $400b over ten years. 2. New formulas for taxing the income of hedge fund managers’ could raise $18 billion. 3.Oil and gas measures would amount to $40 billion. 4. Limiting tax deductions for corporate jets would raise $3 billion.
The President will then pass it to the super committee and hopes they will “overachieve” as they are tasked with already trying to find $1.5 trillion. Next Monday, we will get the rest of his deficit plan to pay for this plan.
“This is a stand-alone bill. It has the investments in growth and jobs, and it has some provisions that pay for it,” Lew said. ”By raising the target of the joint committee, what we’re saying is Congress should pass the jobs bill now, with the pay-fors, and when the joint committee reaches its decisions later in the fall, it can then either put in new offsets to pay for it and that would trigger the pay-fors that are in the bill off, or it can do the original target of 1.5 (trillion dollars) and then the pay-fors that are in the jobs bill will stand. That’s the relationship between the joint committee and the bill. The bill is paid for, and whichever path the joint committee takes, the jobs piece is paid for.”
In other words, the President expects the Congress to pass it and then have the super committee find the money after reviewing his suggestions. When asked why they were expected to pass it without knowing how it’s paid for, Lew said it was because it’s an urgent jobs and growth package and it needs to be passed sooner rather than later.
Boehner said the House will consider it after the CBO rates it. Read here: ABC