FLETCHER, N.C. — Rolling through small Southern towns in a campaign-style bus, President Barack Obama on Monday pressed lawmakers back in Washington to start taking up pieces of his rejected jobs bill and mocked the Republicans who had shot it down in total. The Senate moved to vote soon on one part, a plan to help states hire teachers, but the proposal seemed doomed.
Deep in the mountains of politically important North Carolina, Obama soaked up the region's autumn beauty at the same time he assailed foes of his jobs legislation, accusing them of failing to listen to the public.
Back at the Capitol, Senate Democrats announced they would act first on a single part of Obama's plan, a longshot bid to help states hire teachers and police. A Senate vote could come as soon as the end of the week. If not, it would probably fall into November because the Senate plans to take a break next week, even as Obama urges quick action.
In North Carolina, the president directed his most pointed remarks at Senate Republicans, who last week blocked action on his full $447 billion proposal combining tax cuts and new spending.
"Essentially they said no to you," Obama told a supportive crowd outside Asheville. Noting that Republicans will now get a chance to vote on elements of his jobs agenda one by one, he said: "Maybe they just couldn't understand the whole thing all at once. So we're going to break it up into bite-size pieces."
Republicans denounced the bus trip as nothing more than a taxpayer-funded campaign trip through two must-win states to try to bolster Obama's standing for the 2012 election.
As he traveled along on his imposing black bus, there was little denying the presidential politics at play at each stop. Over three days, Obama is covering the countryside of both North Carolina and Virginia, two traditionally GOP-leaning states that he won in 2008 on his campaign's ability to boost turnout among young people and black voters.
Senate Democrats unveiled the first individual bill, which would spend $30 billion to create or save education jobs and $5 billion to do the same for police and firefighters.
The money would come from a new half-percent tax on income over $1 million, a proposal vigorously opposed by GOP lawmakers.
Senate Majority Leader Harry Reid promised a vote "as soon as possible."
The outcome seemed clear: The plan is unlikely to gain the 60 votes it would need to proceed in the Senate. And it's a non-starter in the Republican House.
More broadly, some aspects of Obama's jobs agenda are expected to become law this fall.
The most likely include extending tax breaks for businesses that buy new equipment, and offering a $4,800 tax credit to companies that hire veterans. There's also bipartisan support for repealing a law that requires the withholding of 3 percent of payments to government contractors.
Democrats and the White House, meanwhile, are confident that Obama's call to extend cuts in Social Security payroll taxes will pass. A two percentage point payroll tax cut enacted last year expires at the end of the year; Obama has proposed cutting it by an additional percentage point and extending the cut to the first $5 million of a company's payroll.
That proposal is hugely expensive – almost $250 billion by administration estimates – and it is not clear how and whether the parties would agree on how to pay for it.
Happy to be back on the road, Obama found a friendly audience that broke into a chant of "four more years." Said the president in response: "I appreciate the four more years, but right now I'm thinking about the next thirteen months."
Still, his travel essentially doubles as his bid for another term. His jobs bill serves as a platform to contrast himself with Republicans on both the legislation and his vision for the nation.
Obama's poll numbers are down in both Virginia and North Carolina, languishing in the mid- to low-forties in recent polls. The numbers mirror his approval ratings nationally. Obama's campaign is pressing to hold both Southern states, even choosing to hold next year's Democratic convention in Charlotte.
The president's bus tour fit into that effort, giving Obama a chance to engage in some of the retail politics that is a staple of presidential campaigns.
Obama's sleek, $1.1 million bus rolled through North Carolina's Blue Ridge Mountains for more than four hours, an unusually long stretch that included unannounced stops.
At Countryside Barbeque in Marion, he shook hands and took photos, and he also had a chance of to talk to potential voters about his jobs bill. The tour took him through a blaze of bright red and orange fall colors. He later stopped at the Mast General Store in Boone, near the campus of Appalachian State University, for some Halloween candy.
Capping his public comments at a high school in Millers Creek, N.C., Obama chided Republicans again, this time in an apparent reference to the influence of the tea party. "It's way overdue for us to stop trying to satisfy some branch of the party and take some common-sense steps to help America," Obama said.
House Republicans were quick to point out that they originally proposed breaking Obama's jobs plan into pieces. House Speaker John Boehner's office said Monday that the Ohio Republican has offered to work the president on aspects of the bill Republicans agree with but the president opted for a bus trip instead.
However, Obama and his opponents on Capitol Hill don't agree on how much they have tried to agree. Obama insisted he would work with the GOP "in any way possible." Noting the angst within some in his own party about his willingness to compromise, Obama said: "I tried so hard to cooperate with Republicans, Democrats have been getting mad at me."
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Associated Press writers Andrew Taylor, Ken Thomas and Ben Feller in Washington, Bob Lewis in Richmond, Va., and Tom Breen in Raleigh, N.C., contributed to this report.
Pieces of the jobs bill that have had GOP backing:
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Payroll Tax Cut
At the center of <a href="http://www.huffingtonpost.com/2011/10/13/boehner-obama-gop-jobs-plan_n_1009991.html" target="_hplink">President Obama's 2011 jobs bill</a> is the proposal to extend and expand the payroll tax cut. The current cut, which lowered payroll taxes from 6.2 percent to 4.2 percent for salaries up to $106,000, expires at the end of this year.
Though the president's jobs bill failed to pass the Senate this October, extending the payroll tax relief has garnered approval from GOP politicians in the past. A 2010 bill extending Bush administration tax cuts, which passed with bipartisan support, included a provision for a payroll tax credit. In a <a href="http://hatch.senate.gov/public/index.cfm/releases?ID=0140aded-1b78-be3e-e0fe-71216ad84ac6" target="_hplink">press release</a> announcing the legislation, Sen. Orrin Hatch (R-Utah) praised the provision as a "reasonable" and "conservative" way to get the economy going.
"The payroll tax cut that is the center piece of this bill is a targeted, reasonable way to get employers hiring again," said Hatch in the release. "This is a conservative approach to help put our economy back on track through tax relief not more government spending."
Hatch, an original sponsor of the measure, told HuffPost he's now undecided as to whether continue backing it, echoing a position now held by the bulk of his party, including <a href="http://www.huffingtonpost.com/2011/09/18/paul-ryan-tax-increases-middle-class_n_968408.html" target="_hplink">Herman Cain and Paul Ryan.</a>
Senate Minority Leader Mitch McConnel (R-Ky) said a payroll tax suspension was floated during a GOP discussion in 2009 as a possible alternative to stimulus. "It would put a lot of money back in the hands of businesses and in the hands of individuals," McConnell said, <a href="http://www.usnews.com/news/stimulus/articles/2009/01/13/obama-democrats-reshape-tax-relief-measures-in-stimulus-package" target="_hplink">according to <em>U.S. News</em></a>. "Republicans, generally speaking, from Maine to Mississippi, like tax relief."
Last month House Majority Leader Eric Cantor implied his support, describing the tax cut as "something I supported in the past" and "will be part of the discussions ongoing," <a href="http://www.bloomberg.com/news/2011-09-07/cantor-leaves-door-open-to-supporting-obama-payroll-tax-cut-extension-plan.html" target="_hplink"><em>Bloomberg</em> reported</a>.
Cantor expressed a willingness to put aside partisan differences in order to create jobs, but added, there are "better ways to focus on small-business growth."
Tax Breaks For Companies Who Hire New Workers
President Barack Obama has proposed a <a href="http://www.huffingtonpost.com/2011/10/11/obama-jobs-bill_n_1005486.html?ref=mostpopular" target="_hplink"> tax break for companies</a> that hire new workers, a tactic the federal government hasn't tried since the 1970s. Two years ago House Majority Leader Eric Cantor, then Republican whip, expressed support for the provision, <a href="http://www.nytimes.com/2009/10/07/business/07tax.html" target="_hplink">telling <em>The New York Times</em>,</a> "There is a lot of traction for this kind of idea. If the White House will take the lead on this, I'm fairly positive it would be welcomed in a bipartisan fashion."
The proposal specifically targets unemployment, <a href="http://gov.aol.com/2011/09/08/obama-s-447-billion-jobs-plan-tax-cuts-for-employees-and-empl/" target="_hplink">offering a $4,000 tax break</a> for hiring anybody who has been looking for a job for more than six months. It has gained appeal among politicians of both parties eager to help out of work constituents, reported the <em>Times</em>.
In March 2010 the <a href="http://clerk.house.gov/evs/2010/roll090.xml" target="_hplink">House</a> and <a href="http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=111&session=2&vote=00055" target="_hplink">Senate</a> passed a similar piece of legislation, the HIRE Act, with bipartisan support. The $17.5 billion year-long program included tax breaks for companies making new hires. <a href="http://www.ukprogressive.co.uk/what-is-obama%E2%80%99s-actual-record-on-creating-jobs/article14925.html" target="_hplink">According to estimates</a> from the Treasury, in the first eight months of the program 10.6 million unemployed workers were hired under the act. However, it's unclear how many would have been hired without the incentives.
Extend 100% Business Expensing
At the end of 2010, President Barack Obama signed the current 100 percent business expensing law, which <a href="http://www.whitehouse.gov/the-press-office/2011/09/08/fact-sheet-and-overview" target="_hplink">allows companies</a> to expense in full the cost of any investments that are made. The president's proposed jobs bill would extend 100 percent expensing for another year.
House Speaker John Boehner (R-Ohio) praised a similar provision in a 2008 Bush-backed economic stimulus bill. Boehner <a href="http://johnboehner.house.gov/News/DocumentSingle.aspx?DocumentID=82527" target="_hplink">said in a press release</a>: "This will provide a particularly strong incentive for small companies to invest in their businesses so they can continue to provide good-paying jobs for the American people."
The 2008 bill increased the amount businesses could expense to $250,000 and was passed with <a href="http://clerk.house.gov/evs/2008/roll025.xml" target="_hplink">bipartisan support</a>.
National Infrastructure Bank
President Barack Obama's proposed jobs bill includes a one-time appropriation of $10 billion to create a national infrastructure bank, modeled after a bipartisan bill currently in the Senate called <a href="http://kerry.senate.gov/work/issues/issue/?id=f0a4612d-382a-46fb-9d31-73e949167108" target="_hplink">the BUILD act</a>. The idea has been kicking around for <a href="http://www.nybooks.com/articles/archives/2008/oct/09/a-new-bank-to-save-our-infrastructure/" target="_hplink">some time now</a> and has support from the business wing of the GOP.
The purpose of the bank is to jump-start investment for infrastructure projects from both government and private funding. The bank would provide loans for projects with a clear public interest: new roads, bridges and mass transit, helping to create thousands of jobs, <a href="http://www.whitehouse.gov/the-press-office/2011/09/08/fact-sheet-american-jobs-act" target="_hplink">according to the White House.</a>
The BUILD act was introduced in March by Sens. John Kerry (D-Mass.), Kay Bailey Hutchison (R-Texas), and Mark Warner (D-Va.). <a href="http://www.uschamber.com/press/releases/2011/march/us-chamber-afl-cio-urge-infrastructure-bank" target="_hplink">At a press conference</a> announcing the bill, Hutchison praised it as "an innovative way to leverage private-public partnerships."
<blockquote>This national infrastructure bank is an innovative way to leverage private-public partnerships and maximize private funding to address our water, transportation, and energy infrastructure needs. It is essential to think outside the box as we work to solve national challenges, particularly in this fiscal crisis. We must be creative to meet the needs of our country and to spur economic development and job growth while protecting taxpayers from new federal spending as much as possible.</blockquote>
President and CEO of the U.S. Chamber of Commerce Thomas J. Donohue stated at the same event that "a national infrastructure bank is a great place to start securing the funding we need to increase mobility, create jobs, and enhance our global competitiveness."
Business Roundtable President John Engler, a Republican former governor of Michigan, <a href="http://thehill.com/blogs/on-the-money/appropriations/165357-kerry-sees-progress-on-infrastructure-bank-bill" target="_hplink">has also shown support</a> for a national infrastructure bank.
Tax Credits For Hiring Unemployed Veterans
The Returning Heroes Tax Credit, a provision of President Barack Obama's proposed jobs bill, would award businesses up to $5,600 in tax credits for hiring veterans who have been unemployed for more than six months. The Wounded Warriors Tax Credit increases the credit to $9,600 for veterans with disabilities caused by their military service.
Similar legislation has been spearheaded by members of the GOP. In February Sen. Scott Brown (R-Mass.) introduced the Hire a Hero Act, which proposed giving companies tax credits for hiring members of the National Guard and Reserve. <a href="http://boston.cbslocal.com/2011/08/06/sen-brown-willing-to-work-with-obama-on-veteran-jobs-bill/" target="_hplink">Brown said in August</a> he hopes to work with the Obama administration to pass the bill. "Our veterans sacrifice so much for us and ask for little in return," <a href="http://www.boston.com/news/politics/politicalintelligence/2011/02/brown_to_introd.html" target="_hplink">he told the <em>Boston Globe</em>,</a> "This bipartisan legislation will help put our heroes back to work."
In July, Rep. Jeff Miller (R-Fla.), Chairman of the House Committee on Veterans' Affairs, introduced the Tax Credit to Hire Veterans Act of 2011. "This bill not only assists America's veterans, but also helps our small businesses, the engine of our economy," <a href="http://veterans.house.gov/press-release/miller-%E2%80%9Cwe-must-reduce-veteran-unemployment-less-5%E2%80%9D" target="_hplink">Miller said in a statement</a>. Reps. John Mica (R-Fla.), Jon Runyan (R-N.J.), and Todd Young (R-Ind.) later <a href="http://thomas.loc.gov/cgi-bin/bdquery/z?d112:HR02443:@@@P" target="_hplink">cosponsored the bill</a>.
Refinance Mortgages At Low Interest Rates
A provision of President Barack Obama's proposed jobs bill would allow more Americans to refinance their mortgages at a nearly 4 percent interest rate. <a href="http://www.whitehouse.gov/the-press-office/2011/09/08/fact-sheet-american-jobs-act" target="_hplink">According to the White House,</a> the plan would put more than $2,000 a year into families' pockets. It would be a change to the existing <a href="http://www.washingtonpost.com/blogs/ezra-klein/post/obama-still-wants-to-refinance-your-mortgage-can-that-work/2011/09/09/gIQAzqpxEK_blog.html" target="_hplink">Home Affordable Refinance Program</a> (HARP), which allows borrowers with loans guaranteed by Fannie Mae and Freddie Mac to refinance.
The proposed mortgage relief plan mirrors a plan co-authored by Sens. Barbara Boxer (D-Calif.) and Johnny Isakson (R-Ga.), the <a href="http://boxer.senate.gov/en/press/releases/071211.cfm" target="_hplink">Helping Responsible Homeowners Act of 2011.</a> The act would help homeowners with Fannie Mae- or Freddie Mac-backed mortgages to refinance at historically low interest rates.
"It rewards responsible homeowners who are current on their mortgage but whose homes are 'underwater' because of the lagging economy," <a href="http://isakson.senate.gov/press/2011/091411BoxerMortgage.html" target="_hplink">said Isakson in a release</a>.
Republican Minority Leader Mitch McConnell called for an amendment to the 2009 economic stimulus package that would give low-interest loans to homeowners. The amendment, spearheaded by McConnell and Sen. Lamar Alexander (R-Tenn.), made refinanced mortgages available at 4 to 4.5 percent. "We believe that a stimulus bill must fix the main problem first and that's housing," <a href=" http://www.foxnews.com/politics/2009/02/02/mcconnell-proposes-cheap-government-backed-mortgages-stimulate-economy/#ixzz1am9mXULr" target="_hplink">McConnell told reporters</a>.
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JULIE PACE 10/17/11 11:05 PM ET Associated Press