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US jobs plan: Senate blocks key proposal

Friday, 21 October 2011

President Barack Obama President Obama has been campaigning hard for his jobs bill
The US Senate has failed to pass a key piece of President Barack Obama's jobs bill that would have seen higher taxes on the rich help create jobs for teachers, police and emergency workers.
Senators voted 50-50 on the legislation, 10 short of the 60 votes needed to pass the plan.
The proposal is part of Mr Obama's $447bn (£283bn) package designed to kickstart the flagging US economy.
Lawmakers also failed to push through a motion to repeal a tax withholding law.
Senators voted 57-43 against the proposal to scrap a law allowing the government to withhold 3% of payments to contractors.
'Protecting millionaires' The first vote put paid to the Democrat plan to support 400,000 jobs by raising $35bn through increased taxes.
The failure to pass the proposal highlights the increasing antagonism between Democrats and Republicans, observers said.
"Protecting millionaires and defeating President Obama are more important to my Republican colleagues than creating jobs and getting our economy back on track," said Democrat Harry Reid.
But Republicans said raising taxes was not the way to create jobs and stimulate growth.
"The fact is we're not going to get this economy going again by growing the government. It's the private sector that's ultimately going to drive this recovery," said Republican Mitch McConnell.
Other parts of Mr Obama's jobs bill, which includes investment in infrastructure projects, extending benefits for long-term unemployed, tax breaks for firms taking on new workers and measures to broaden home ownership, have yet to be voted on.



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