President Barack Obama’s recently unveiled job creation proposal has quickly divided politicians. The Wall Street Journal reports that Republicans have raised issue with the president’s plan to pay for the plan, which would largely come from increased taxes on higher income Americans.
The new job plan suggests a variety of measures designed to encourage business activity and support Americans looking for work, including extended payroll tax cuts, increased infrastructure spending and further job training.
Expected to cost more than $300 billion, the president’s suggestion to pay for the plan emphasizes the end of various tax exemptions for wealthier Americans. The proposal would limit itemized deductions for households earning at least $250,000 annually as well as ending breaks for oil companies, corporate jet owners and investment fund managers.
While the White House has argued the changes should have minimal economic impact and raise $467 billion over the course of 10 years, Republicans have suggested these higher taxes would simply shift costs elsewhere, further hurting jobs growth.
“It would be fair to say this tax increase on job creators is the kind of proposal both parties have opposed in the past,” Michael Steel, a spokesman for House Speaker John Boehner, told the Journal.
The Associated Press reports that state leaders are similarly divided, with many worried about conditions associated with accepting federal money.