Republicans Defeat Obama's Jobs Bill

Although unemployment continues to drag down the economy, President Obama’s jobs bill was defeated by Senate Republicans Tuesday.

Forty-six Republicans joined with two Democrats to filibuster the $447 billion plan. Although the vote count was not final as of 4:30 p.m. local time, watchers say it’s impossible to get the 60 votes needed in the 100-member Senate to keep the legislation alive.

The jobs bill would have included Social Security payroll tax cuts for workers and businesses and other tax relief totaling about $270 billion.

There was also $175 billion in new spending on roads, school repairs and other infrastructure — as well as jobless aid and help to local governments to avoid layoffs of teachers, firefighters and police officers.

Republicans opposed the measure over its spending to stimulate the economy and its tax surcharge on millionaires, according to an Associated Press report Tuesday afternoon.

The jobs bill at-a glance courtesy of the White House, Congressional Budget Office, Tax Policy Center:

Federal spending ($175 billion) including:

— $50 billion for highways, transit, rail and aviation improvements.

— $54 billion for unemployment benefits and job training.

— $35 billion for local governments to hire and retain teachers, police and firefighters.

— $30 billion for school construction.

Tax Cuts ($272 billion):

— Extend and expand a payroll tax cut for workers that is scheduled to expire at the end of the year. For 2012, the legislation would reduce Social Security taxes paid by workers to 3.1 percent of their wages. Cost: $175 billion.

— Cut in half — to 3.1 percent — the Social Security taxes paid by businesses on the first $5 million of their payroll in 2012. Exempt companies that increase their payroll in 2012 — through new hires or pay raises — from paying Social Security taxes on the increased payroll, with a cap of $50 million. Total cost: $65 billion.

— Give a tax credit of up to $4,000 for hiring workers who have been unemployed more than six months. Cost: $8 billion.

— Provide a tax credit of up to $5,600 for hiring military veterans who have been out of work more than six months.

— Give a tax credit of up to $9,600 for hiring military veterans with service-related disabilities who have been out of work more than six months.

— Extend tax provisions that enable companies to more quickly write off the cost of new equipment, saving companies an estimated $5 billion.

Tax increase:

— A new 5.6 percent tax on annual income above $1 million, beginning in 2013. The tax would be applied to wages and investment income. In 2013, an estimated 392,000 U.S. households would see their taxes increase by an average of $110,500. Over a next decade, the tax increase would raise about $453 billion.