A piece of Obama’s jobs bill at last garners passage … but in the House

posted at 6:45 pm on October 27, 2011 by Tina Korbe

Let no Democrat anywhere ever say again that Republican obstructionism is to blame for the inaction of Congress and the president on jobs. Not only has the Republican House of Representatives passed 15 of its own jobs bills, but, today, the House also passed part of the president’s American Jobs Act, according to The Washington Times. That’s more than can be said for the Democratically-controlled Senate, which has yet to pass a single component of the AJA.

The measure that scored the support of 405 members of the House is one to repeal a rule that hasn’t yet taken effect, but that would require federal, state and local governments to withhold 3 percent of payments to government contractors. The president and House Republicans agree that the withholding rule — set to take effect in 2013 — is destructive to small businesses.

Still, the bill is not without controversy. According to budget rules, it will cost $11.2 billion. To pay for it, House Republicans passed another bill that tinkers with Medicaid and health exchange subsidy eligibility requirements under the PPACA — a bill that would save $13 billion. House Democrats weren’t so keen on that bill — and the Senate likely won’t be, either.

But some House Democrats didn’t even like the bill to pass a part of the president’s jobs plan. In fact, all 16 votes against the presidentially proposed measure came from members of Obama’s own party. Michigan Democrat Rep. Sander Levin voted in favor of the bill, but said it won’t actually do anything to create jobs.

Seems Levin is in the same camp as Minority Whip Steny Hoyer, who recently mocked the idea that repealing yet-to-be-enacted regulations could positively affect the hiring climate. In reality, repealing regulations before they even take effect makes sense. (Of course, it makes more sense not to pass the regulations in the first place.) In this case, private businesses that contract with the government now know they won’t face withholding in 2013 — and will adjust their business plans accordingly. The restored three percent they’ll receive in payments might just go toward additional hiring.


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If Boehner was really rowdy, he’d pass ten bills per day and send them to the Senate. What would be the value of a stack of bills (say a hundred or so) on Dingy Harry’s desk?

Eyecandy.

platypus on October 27, 2011 at 6:49 PM

Bluff called.

hillbillyjim on October 27, 2011 at 6:50 PM

in that Republican Congress?

golfmann on October 27, 2011 at 6:50 PM

USA! USA! USA!

Maxpower on October 27, 2011 at 6:53 PM

And, how exactly does this create jobs?
Oh yeah, that’s right, the government does not CREATE jobs….
*shakes head*

HornetSting on October 27, 2011 at 6:56 PM

“The restored three percent they’ll receive in payments might just go toward additional hiring.”

“Now that’s just crazy talk…” – OWS

Seven Percent Solution on October 27, 2011 at 7:04 PM

It’s a dangerous gambit, and indicates a pretty spectacular amount of faith in the national economy. The point is to make the President own what may very well send the economy to its lowest point just in time for the election, with no claim the President can make to obstructionism.

In short, they’re making Pres. Obama eat the crap sandwich he’s been insisting he wants a piece of. One can only hope the economy will survive any continued executive stupidity.

Sgt Steve on October 27, 2011 at 7:05 PM

“The restored three percent they’ll receive in payments might just go toward additional hiring.”
“Now that’s just crazy talk…” – OWS

Seven Percent Solution on October 27, 2011 at 7:04 PM

+7%
Yeah, that extra three percent will be set aside for a rainy day/obama gets re-elected survival fund.

HornetSting on October 27, 2011 at 7:10 PM

If Obama had been serious about bipartisan health care reform, he would have approached it in the same way as is, apparently, being done for his jobs bill: pass one part at a time.

There were a list of things that Republicans and Democrats agreed on in the health care bill that eventually passed, and most likely other parts that were left out along the way. Yet instead of passing all of the things they agreed on, one by one, Obama and the Democrats decided to ram the whole thing through, which they were punished for last year’s elections.

I don’t see why Congress can’t just sit down and find out all the stuff they agree on, pass those things ASAP, and then work on the other stuff they disagree on to find compromises on the side. Then things would actually get done in Washington, and the people would feel like something’s actually being accomplished.

Seixon on October 27, 2011 at 7:12 PM

doesn’t matter..this is the GOP congress where they can do no right…

cmsinaz on October 27, 2011 at 7:15 PM

You guys don’t get it…It will be seen exactly the opposite. Republicans paste part of the bill to not be seen as the obstructionists they are. They have know media wing to protect them.

tomas on October 27, 2011 at 7:18 PM

HornetSting on October 27, 2011 at 7:10 PM

If that happens…

(I don’t even want to think of it)

Seven Percent Solution on October 27, 2011 at 7:24 PM

You guys don’t get it…It will be seen exactly the opposite. Republicans paste part of the bill to not be seen as the obstructionists they are. They have know media wing to protect them.

tomas on October 27, 2011 at 7:18 PM

Obstructionists?

Obstructing what, exactly — the “Joke Jobs Bill” that neither Ojesus nor the Democrats want to see passed?

Get real, Lucille.

hillbillyjim on October 27, 2011 at 7:29 PM

The GOP leadership in the Congress is limp handshake material.

The elections in November 2010 meant nothing to these Progressive, ruling class idjits in the GOP Ruling class.

HELLLLLLLLO Tea Party Freshman.

The ENTIRE GOP leadership in D.C. should resign immediately. Can you imagine a gutless GOP president in 2013 and the limp handshakers Boehner and McConnell righting this ship?

This sucker is going down……God help us survive the surge of water coming in.

PappyD61 on October 27, 2011 at 7:37 PM

I have been telling the GOP to pass the thing. Fools.

It is, and always was, a weapon.

Moreover, he is smarter than they are since he knows his plans will not work. Most of theirs will not, either.

Lets cut corp tax rates to zero. The fact that their is no demand or manufacturing or construction jobs doesn’t mean anything.

IlikedAUH2O on October 27, 2011 at 7:39 PM

What is the problem, anyway?
We are all going to be building SOLAR CARS by next summer! Growfins here just contacted me telepathically to get ready.

Who is with us?

IlikedAUH2O on October 27, 2011 at 7:45 PM

PappyD61 on October 27, 2011 at 7:37 PM

True, again.

Mirimichi on October 27, 2011 at 7:48 PM

Ok, let me get this straight. This bill repeals a mandatory 3% holdback to pay government contractors. Why were they holding that 3% back from payment? Is that 3% ever supposed to get to the contractor, or was that a mandatory government theft of services for that 3%?

If that 3% was a permanent hold back, isn’t this just a game then? Why wouldn’t the contractor inflate the price 3% knowing there is a holdback in play?

This whole thing makes no sense and how does this create jobs? really!!

karenhasfreedom on October 27, 2011 at 8:19 PM

So when will Barry mention OBSTRUCTIONIST Democrats?

And a Democratic Senate that has yet to pass a budget in the last 900 days?

GarandFan on October 27, 2011 at 9:32 PM

The 3% Holdback would destroy small businesses working government contracts.

Businesses live or die on cash flow. The employees get their paycheck on a regular schedule, timely as possible.

The governmnet gets its taxes quarterly, or you pay penalties.

The company gets paid for work from customers sometimes 90 days out, sometimes worse.

A government contract rarely gets a profit at 10%.

That profit amount is the only thing that makes the cash flow equation even close to working. Actually a 10% profit will probably put you into business loan territory, so add ineterest payments to cash going out.

That 3% holdback is 30% of the cash that is needed for cashflow.

Could the employees take a 60% trim and delay in their pay, till the holdback is paid? That is the equivalent dollars for a business, because employee pay is about 50% of the immediate cash out the door.

Like I said business killer. It should have taken 10 minutes to explain this to Congress. Why are they so ignorant to let something like this pass?

Jimmy Doolittle on October 27, 2011 at 10:30 PM

Like I said business killer. It should have taken 10 minutes to explain this to Congress. Why are they so ignorant to let something like this pass?

Jimmy Doolittle on October 27, 2011 at 10:30 PM

Rhetorical question, I assume…

VelvetElvis on October 28, 2011 at 7:37 AM

Rhetorical question, I assume…

VelvetElvis on October 28, 2011 at 7:37 AM

Roger That.

(I am Hot Air’s renowned threat killer. It sucks being on the left Coast, and being a night owl. It is usually the only time I can jump in on these topics, after they’re dead).

Jimmy Doolittle on October 28, 2011 at 4:48 PM