Dem job push crucial to Michigan

Congress' bills include incentives for firms to hire, retain workers

Deb Price / Detroit News Washington Bureau

Washington -- The Senate this week is expected to take up a jobs bill that will prove critical to Michigan, plagued by the nation's highest unemployment rate.

The move comes after President Barack Obama, in his State of the Union speech, made jobs the highlight, with calls for helping small businesses, tax credits for hiring workers and cutting tax breaks for companies that move jobs overseas, as well as other initiatives.

The Senate's bill likely will include tax cuts for businesses that hire workers and extensions of unemployment aid and the COBRA health care subsidy.

Key elements of the Obama vision also will likely be part of early House and Senate jobs bills, such as helping unlock credit for small businesses. Others might be dealt with separately in the appropriations process, such as Obama's call for more loan guarantees to help companies build nuclear power plants.

The guarantees would benefit DTE Energy, which is considering a nuclear plant.

Other Obama proposals likely will be challenging, such as his goal to double U.S. exports over the next five years.

The job bills come at a time when Michigan's jobless rate has hit 14.6 percent, and 540,000 of its residents are receiving unemployment benefits.

Senate Majority Leader Harry Reid, D-Nev., said he hopes to have a jobs bill passed by Friday with Republican support.

Democrats have lost their 60-vote supermajority in the Senate that is needed to pass most bills and so are likely to pass a series of smaller jobs bills that draw enough Republican support.

Sen. Debbie Stabenow, D-Lansing, said whatever bill passes, "it's absolutely critical" for legislation to focus on small businesses.

"We have so many small businesses that cannot get loans now," she said. "There will be more things coming -- eliminating the capital gains for small businesses, making loans more affordable by partnering with community banks."

Rep. Mark Schauer, D-Battle Creek, said: "Whatever the Senate does, they need to do it quickly. We need to provide as many tools as possible for businesses and creating infrastructure, all things that will help create jobs."

The House, meanwhile, may soon take up its own jobs package.

The House passed a $154 billion jobs bill in December, but House Speaker Nancy Pelosi signaled last week she's flexible about what it takes "to have a bill on the president's desk as soon as possible."

In some areas -- such as business tax cuts and loan guarantees for new nuclear power plants -- the president may get support from Republicans, depending on how the incentives are packaged.

Rep. Sander Levin of Royal Oak said he's working with other Democrats on a "comprehensive" jobs bill that would help small businesses with tax credits and easier access to credit, as well as create jobs with infrastructure projects.

That bill, said the senior Democrat on the Ways and Means Committee, could be ready in two weeks.

"We don't know the price tag. The test will be, 'Will it help job creation?' " Levin said. "We clearly have to spark more job creation ... I hope we can get bipartisan support."

It's unclear how much of a bipartisan mood Republicans will be in as they prepare for midterm elections bearing a message that Democrats didn't focus on jobs.

Rep. Dave Camp, R-Midland, said he hopes House Democrats move in "bite-sized pieces," so Republicans can support items of agreement, such as tax breaks for small businesses.

"You have to see how they are going to pay for things," said Camp, the ranking Republican on the House Ways and Means Committee.

"And it's not about just passing a bill, but answering the question, 'Will this create jobs?' Clearly, the economy is still shedding jobs with the Democrats' policies."