Barack Obama in an attempt to reinvigorate his presidency and the economy has presented to the congress a jobs plan. The $450 billion price tag is larger-than-expected.
The plan proposes to reduce payroll tax paid by employees to 3.1% in 2012 from the 4.2% level temporarily introduced this year. As it stands now, without this plan, this tax would revert to its traditional rate of 6.2%.
The plan will also reduce the payroll tax paid by the employers from 6.2% to 3.1%, with a limit of the first $5m of wages. Further employers hiring new workers or increased salaries will be exempt from payroll taxes on the higher payroll.
The plan also calls for the establishment of an infrastructure bank funded with $80bn.
The plan also proposes finding ways to help homeowners take advantage of low mortgage rates.
As my long time readers know the point of my articles is to help readers make money. As always, I will refrain from making comments that have no bearing on generating profits. Here is my plan to make money from his speech:
The plan has a very heavy emphasis on tax cuts. This portion of the plan is likely to pass the Congress. Consider buying Monster Worldwide (MWW), LinkedIn (LNKD), Automatic Data Processing (ADP), and Paychex (PAYX).
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