THE AMERICAN JOBS ACT: IMPACT FOR PENNSYLVANIA

THE AMERICAN JOBS ACT: IMPACT FOR PENNSYLVANIA

The American people understand that the economic crisis and the deep recession weren’t created

overnight and won’t be solved overnight. The economic security of the middle class has been under attack

for decades. That’s why President Obama believes we need to do more than just recover from this

economic crisis – we need to rebuild the economy the American way, based on balance, fairness, and the

same set of rules for everyone from Wall Street to Main Street. We can work together to create the jobs

of the future by helping small business entrepreneurs, by investing in education, and by making things the

world buys. The President understands that to restore an American economy that’s built to last we cannot

afford to outsource American jobs and encourage reckless financial deals that put middle class security at

risk.

To create jobs, the President unveiled the American Jobs Act – nearly all of which is made up of ideas

that have been supported by both Democrats and Republicans, and that Congress should pass right away

to get the economy moving now. The purpose of the American Jobs Act is simple: put more people back

to work and put more money in the pockets of working Americans. And it would do so without adding a

dime to the deficit. The American Jobs Act has five components:

1. Tax Cuts to Help America’s Small Businesses Hire and Grow

 The President’s plan will cut the payroll tax in half to 3.1% for employers on the first $5 million in

wages, providing broad tax relief to all businesses but targeting it to the 98 percent of firms with

wages below this level. In Pennsylvania, 230,000 firms will receive a payroll tax cut under the

American Jobs Act.

2. Putting Workers Back on the Job While Rebuilding and Modernizing America

 The President’s plan includes $50 billion in immediate investments for highways, transit, rail and

aviation, helping to modernize an infrastructure that now receives a grade of “D” from the American

Society of Civil Engineers and putting hundreds of thousands of construction workers back on the

job. Of the investments for highway and transit modernization projects, the President’s plan will

make immediate investments of at least $1,373,300,000 in Pennsylvania that could support a

minimum of approximately 17,900 local jobs.

 The President is proposing to invest $35 billion to prevent layoffs of up to 280,000 teachers, while

supporting the hiring of tens of thousands more and keeping cops and firefighters on the job. These

funds would help states and localities avoid and reverse layoffs now, and will provide $1,155,300,000

in funds to Pennsylvania to support up to 14,400 educator and first responder jobs.

 The President is proposing a $25 billion investment in school infrastructure that will modernize at

least 35,000 public schools – investments that will create jobs, while improving classrooms and

upgrading our schools to meet 21

st

century needs. Pennsylvania will receive $944,000,000 in funding

to support as many as 12,300 jobs.

 The President is proposing to invest $15 billion in a national effort to put construction workers on the

job rehabilitating and refurbishing hundreds of thousands of vacant and foreclosed homes and

businesses. Pennsylvania could receive about $20,000,000 to revitalize and refurbish local

communities, in addition to funds that would be available through a competitive application.

 The President’s plan proposes $5 billion of investments for facilities modernization needs at

community colleges. Investment in modernizing community colleges fills a key resource gap, and

ensures these local, bedrock education institutions have the facilities and equipment to address current