President's Jobs Bill Would Support Thousands of Jobs in Maine

Press Release

Proposals would help avoid layoffs of teachers, first responders; provide tax cut for 30,000 Maine businesses

Congresswoman Chellie Pingree said the American Jobs Act that President Obama sent to Congress yesterday would support thousands of jobs in Maine and provide a tax break to tens of thousands of Maine businesses.

"Maine would stand to get nearly $120 million so communities could keep teachers and first responders on the job and even hire back some who have been laid off," Pingree said. "That keeps people working and relieves some of the strain on local taxpayers."

The American Jobs Act would also invest in infrastructure, which would bring a minimum of $138 million to Maine to fix roads and bridges.

"A new report found the rural roads and bridges in our state are among the worst off in the country. This money would help repair and maintain them and would immediately put people back to work in the process," Pingree said.

Pingree also highlighted the tax cuts for small businesses, which provide most of the jobs in Maine. The President's proposal would cut the payroll tax employers pay in half to 3.1%.

"This proposal would cut the payroll tax in half for 30,000 Maine small businesses," Pingree said. "That makes it more affordable for businesses to hire and retain employees. On top of that, businesses get a 100% refund of their payroll taxes on all new jobs they create. This is an important temporary boost for employers in this tough economic climate."

The American Jobs Act would be fully paid for, in part by closing a loophole for private equity and hedge fund managers and by capping tax deductions on tax payers making over $200,000.

"Working families have been asked over and over again to sacrifice in this economy, so now it's time for the rich to start paying their fair share," Pingree said.

Some of the projected effect on the American Jobs Act in Maine:

· 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 Maine, 30,000 firms will receive a payroll tax cut.

· $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. At least $138 million would be made available to Maine that could support a minimum of approximately 1,800 local jobs.

· An investment of $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. In Maine, that would provide about $117 million to Maine to support up to 1,800 educator and first responder jobs.

· A $25 billion investment in school infrastructure that will modernize at least 35,000 public schools. Maine would receive over $90 million in funding to support as many as 1,200 jobs.

· $5 billion of investments for facilities modernization needs at community colleges--nearly $13 million for Maine community colleges.

· An expansion of the payroll tax cut passed last December by cutting workers payroll taxes in half next year. A typical household in Maine, with a median income of around $48,000, will receive a tax cut of around $1,490

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