Carl Levin: Winning the jobs fight, one battle after another
Published 4:37 pm Friday, March 26, 2010
The industrialist John D. Rockefeller believed that “the world owes no man a living but that it owes every man an opportunity to make a living.” Far too many Michiganians these days are being denied that opportunity, but Congress has taken some important steps to boost job creation and put people back to work.
President Obama recently signed the Hiring Incentives to Restore Employment Act, the first of what will be several job-creation measures Congress will take up. This legislation includes a number of important provisions that will help businesses begin hiring again.
Following up on that bill, the Senate and House have each approved the American Workers, State, and Business Relief Act, and I am optimistic we will soon reach agreement on a final version of that bill to send to the president. Later this spring, we plan to pass a third piece of legislation that will give businesses the greater access to credit they need to survive and grow.
No individual bill, by itself, will solve our jobs problem. Unfortunately, the depth of the crisis we face means solutions aren’t simple or easy. We’ll reduce unemployment with a series of small wins, not in one sweeping move, and these bills are important successes in that larger battle.
The bill the president signed in mid-March, for example, does a number of things to boost employment. It provides a tax credit to companies that add new workers, a credit that could make the difference between making new hires or holding back when companies analyze the costs and benefits of boosting their payrolls. It allows businesses to write off investments more quickly, saving them tax expenses and freeing up more money for payrolls.
The bill also includes funding for important highway programs, and it continues the Build America Bonds program, which Michigan schools and local governments have used to finance more than $1 billion in investments. These two programs will help provide important public infrastructure while keeping construction workers on the job.
When we send the American Workers, State, and Business Relief Act to the president, we will make additional progress. Significantly for Michigan, this legislation will extend unemployment and COBRA health insurance benefits until the end of this year. We have passed a series of short-term extensions of these programs, but extensions of only a few weeks have left families worrying that their benefits will soon expire. This lifeline will help families keep food on the table and shelter overhead.
We will also extend a number of provisions giving tax relief to businesses, freeing up more resources they can use to retain or add workers. And we will continue offering expanded aid to state Medicaid programs. The economic crisis means more people are drawing Medicaid benefits, at the same time that states are facing tremendous budget pressure.
Michigan small businesses are struggling to get access to the credit they need. Even businesses with good credit records and plenty of customers often can’t get the capital they have traditionally relied upon to operate. One of the big problems is that, just as the value of our houses have declined, so has the value of business property and equipment. That means businesses have less to offer as collateral when they apply for loans, sharply restricting their access to credit. If we tackle this problem in the coming weeks, we can make a big difference in businesses’ ability to keep and add workers.
The fight to restore opportunity for every American to make a living will not be easy. The economic crisis hit us like a hurricane, and just like a hurricane, the cleanup will last longer than the storm. But working families need us to act, and act quickly. Each step we can take to restore jobs will be an important step in giving every American worker the opportunity they deserve.
Carl Levin is the senior U.S. senator from Michigan.