Cain Vs. Obama: A Comparison of Economic Issues

Cain Vs. Obama: A Comparison of Economic Issues


Job Creation

Cain: Can the former pizza magnate, who was known for slashing headcount, be a massive job creator? On the one hand, Cain says no — at least in theoretical terms. “First of all, government can’t create jobs,” Cain has said. “The business sector creates jobs when businesses grow, and 9-9-9 encourages and inspires businesses to grow.”

 

On the other hand Cain has also said his 9-9-9 plan would create the right environment for growth, allowing him to create 6 million jobs and cut America’s jobless rate in half.

Obama: In September 2011, President Obama unveiled the American Jobs Act, a $447 billion plan that has already been rejected by the Senate. The centerpiece of this proposal involves more loans and access to capital for entrepreneurs, as well as greater tax cuts to small businesses to help them hire and grow.

The tax breaks would be accomplished in three ways: slashing the payroll tax in half for the first $5 million in wages paid; temporarily eliminating employer payroll taxes on wages for new employees or raises for existing workers; and allowing large and small businesses alike to claim 100% expensing in 2012 for the investments they make in new plants and equipment.

Other components of the American Jobs Act involve tax credits up to $9,600 for those who hire veterans; increased investments to the tune of $50 billion in roads, railroads and airports; and $25 billion to update more than 35,000 schools nationwide. All of these efforts and more, Obama says, will put 2 million people back to work and bring down the U.S. unemployment rate, which now tops 9%.


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