US Senate rejects jobs and tax plans.
One proposal to incentivize job creation came from Obama's Democrats, and the other from the Republicans; Congress continues the debate on the government's role in job creation.
The U.S. Senate yesterday rejected two proposals to encourage job creation. One plan was from the Democrats and the other from the Republicans. After discarding the rival proposals, Congress continues the debate on the government's role in job creation.
The Democratic proposal envisioned transferring $35 billion to state and local governments to help them retain and rehire public employees, such as nurses, police officers, and teachers. The proposal would be funded by a 0,5% tax on the income of those earning over $1 million annually.
The Republican leadership, in turn, had proposed canceling a 3% tax on the salaries of temporary government employees, which is withheld at source. The $11 billion from this tax waiver would be paid for by recovering an equivalent amount of unspent funds held in government agency accounts.
The proposals were rejected by senators in separate votes. Variations of both projects formed part of President Barack Obama's jobs creation plan, which was defeated in the Senate last week. (Source: Dow Jones)