White House releases state-by-state breakdown of American Jobs Act


by Diana Zoga


Posted on September 12, 2011 at 8:22 PM

Updated Monday, Sep 12 at 10:16 PM


The White House provided short summaries of how the president's proposed American Jobs Act could impact individual states on Monday.

The proposal includes a public works spending package, money to help states and local governments keep teachers and first responders on the payroll, and payroll tax cuts.

A 3.1% payroll tax cut for businesses would impact about 120,000 firms in Missouri and 260,000 businesses in Illinois - according to White House estimates.

Liz Pecha-Poelker, one of the owners of PrintFlex Graphics, Inc. in the St. Louis Hill neighborhood, says the cut could amount to about $20,000 a year in savings for her company.

"It's not enough of an incentive to add a position that you don't need or can't justify in your overhead," said Poelker.

"It might be the tipping point if we were on the fence about hiring somebody."

Keith Womer, the Dean of the College of Business at the University of Missouri in St. Louis, says the bill is trying to generate short-term stimulus.

"People are arguing that these are the businesses that need to expand if we're going to lower unemployment. At least this is some incentive to expand whether that, by itself, is what causes them to expand," said Keith Womer, the Dean of the College of Business at the University of Missouri in St. Louis.

The proposal includes a payroll tax cut for families, which amounts to $1,520 for a household - making $49,000 a year.

The bill also spends tax dollars on infrastructure. In Missouri, that includes just over $716 million. In Illinois, the proposal aims to spend $1.5 billion.

The White House's summaries include what the President wants to spend to keep first responders and teachers on state and local payrolls, school infrastructure, vacant and foreclosed home rehabilitation.

Read the White House's state-by-state summaries here: www.whitehouse.gov/blog/2011/09/09/state-state-look-american-jobs-act