A jobs bill aimed at encouraging businesses to hire more workers broke through a Republican filibuster in the U.S. Senate Feb. 22 on a 62-30 vote.
The Senate’s newest member, Scott Brown of Massachusetts, and four other Republicans voted to end debate so that the bill can be brought to a vote.
The bill contains a measure exempting businesses that hire the unemployed from Social Security payroll taxes through December. Those businesses would get another $1,000 credit if new workers stay on the job a full year.
Economist Mark Zandi says the measure could potentially create 250,000 new private-sector jobs. That’s less than 4 percent of the 8.4 million jobs lost in the recession, and many Democrats have pressed for a much strong jobs-creation package.
But given overwhelming Republican opposition, the bill represents a modest victory for those who believe the government needs to do more to quickly create jobs.
After the vote, President Obama thanked the Senate. “The American people want to see Washington put aside partisan differences and make progress on jobs, and today the Senate took one important step forward in doing that,” Obama said, adding that more needs to be done.
Among Obama’s proposals to boost the economy are a $250 payment to Social Security recipients, $25 billion to help cash-strapped states and $30 billion in Wall Street bailout money redirected to help community banks lend to small businesses.
“It’s a good first step,” Obama senior adviser David Axelrod said. “There’s no doubt we need to do more.”
In addition to the hiring tax incentives and more funding for highways, the bill would extend a tax break for small businesses buying new equipment and modestly expand an initiative that helps state and local governments finance infrastructure projects.