GOP jumps on jobless rise, Obama signs benefits extension and asks for patience

OBAMA'S REMARKS

Now, I would also like to announce that I just signed into law a bill that will help grow our economy, save and create new jobs and provide relief to struggling families and businesses. The need for such a measure was made clear by the jobs report that we received this morning. Although we lost fewer jobs than we did last month, our unemployment rate climbed to over 10 percent -- a sobering number that underscores the economic challenges that lie ahead.

When we first came into office our immediate goal was to stop the freefall that caused our economy to shrink at an alarming rate. We have succeeded in achieving that goal, as our economy grew last quarter for the first time in a year. But history tells us that job growth always lags behind economic growth, which is why we have to continue to pursue measures that will create new jobs. And I can promise you that I won't let up until the Americans who want to find work can find work and until all Americans can earn enough to raise their families and keep their businesses open.

The bill I signed today will help folks do that while continuing to grow our economy. It's a bill that extends unemployment benefits for up to 20 additional weeks, with the longest extension for the hardest-hit states. Already these benefits have helped 16 million unemployed Americans, and now that I've signed this bill, an additional 700,000 Americans who are still searching for work will be able to sign up for an extension of those benefits immediately.

Although the extension will help over 1 million Americans, it won't just put money into the people's pockets who are receiving the benefits. Economists tell us that when these benefits are spent on food or clothing or rent, it actually strengthens our economy and creates new jobs.

Now, this bill will also cut taxes for struggling businesses, with even larger cuts for small businesses, which means that thousands of entrepreneurs will get the cash they need to avoid laying off workers or closing their doors, and will extend the tax credit for all home buyers through April of next year while strengthening it with stronger anti-fraud measures.

The rebound in the housing market was one of the big factors that contributed to the growth of the economy last quarter, and brought hundreds of thousands of families into the housing market. We want to give even more families the chance to own their own home.

Now, it's important to note that the bill I signed will not add to our deficit. It is fully paid for, and so it is fiscally responsible. It builds on a Recovery Act that's already saved or created over 100 -- over 1 million jobs, and it will lead to even more in the weeks and months ahead.

We will also build on the measure I signed today with further steps to grow our economy in the future. To that end my economic team is looking at ideas such as additional investments in our aging roads and bridges, incentives to encourage families and businesses to make buildings more energy-efficient, additional tax cuts for businesses to create jobs, additional steps to increase the flow of credit to small businesses, and an aggressive agenda to promote exports and help American manufacturers sell their products around the world.

So although it will take time and it will take patience, I am confident that our economy will recover. I'm confident that we're moving in the right direction. And I promise that I won't rest until America prospers once again.

Thank you, everybody.

WHITE HOUSE RELEASE

Today, President Obama signed legislation to help create jobs by providing tax cuts for homebuyers and businesses, while providing much-needed support for workers who are still struggling to find jobs. These three steps are part the President’s strategy to help the economy grow.

Last year, our economy was in a freefall. Some economists were predicting that we were headed into a second Great Depression. The Obama Administration took aggressive steps to stem the spread of foreclosure, get credit flowing for families and businesses, and enact the most sweeping recovery package in history. Those steps have succeeded in pulling our economy back from the brink and putting us on a path to recovery. Our economy has returned to growth, which is a critical first step to getting job growth going again.

Today’s legislation builds on the successes of the American Recovery and Reinvestment Act to help spur job creation and help struggling workers. It is fiscally responsible, paid for by postponing tax provisions benefiting U.S. multinational corporations and other measures. The Administration will continue working to create jobs, boost the economy, and lay a new foundation for growth.

TODAY’S STEPS TO CREATE JOBS AND HELP WORKERS

While we have pulled the economy back from the brink and there are signs of a recovery underway, there is an enormous amount of work that remains to be done. There are still too many Americans without jobs and too many families in pain. This bill:

· Strengthens the Safety Net for Workers Who Cannot Find Jobs – Immediately Helping 700,000 People and Eventually Helping Over a Million. There are millions of workers who want and need a job but cannot find one. There are 5.6 million workers who have been unemployed for at least 27 weeks. These long-term unemployed workers make up 36 percent of unemployed workers, the highest share in history. Today’s legislation will allow up to 20 additional weeks of unemployment insurance, with the most weeks going to workers in states with the highest unemployed rates. It will give immediate help to 700,000 people who have already exhausted their benefits but still cannot find work. In total, over a million workers will benefit and receive an average of $300 per week. In addition to helping struggling families, economists say unemployment benefits are one of the best ways to strengthen the economy and create jobs because they are often spent quickly on needs like rent and groceries.

· Creates Jobs by Cutting Taxes for Struggling Businesses. The bill provides an expanded tax cut to tens of thousands of struggling businesses, providing them with the immediate cash they need to pursue an expansion or avoid contracting or furloughing their workers. The Economic Recovery Act included a provision that allowed small businesses to count their losses this year against the taxes they paid in previous years. Today, the President extended that benefit for an additional year and expanded it to medium and large businesses as well. Business losses incurred in 2008 or 2009 can now be used to recoup taxes paid in the prior five years. This provision is a fiscally responsible economic kick-start, putting $33 billion of tax cuts in the hands of businesses this year when they need it most, while enabling Treasury to recoup the majority of that funding in the coming years as these businesses regain their strength and resume paying taxes.

· Extends and Expands the Homebuyer Credit with Strong Anti-Fraud Measures. The Homebuyers Tax Credit is a temporary but important measure to continue economic recovery. Today, the President is signing a one-time extension of the credit for homes purchased or under contract by April 30, 2010. A credit of up to $8,000 will apply to qualifying first-time buyers, and a smaller credit of up $6,500 will now apply to families that have lived in their homes for at least five years and wish to step up to a new home. The new law extends a similar credit until May, 2011 for members of the uniformed services whose duty takes them overseas. The new law also contains important measures to combat tax fraud and protect responsible homebuyers, including setting a minimum age for home purchase and requiring documentary proof of the purchase in order to receive the credit.

· Other Steps to Close the Deficit and Strengthen the Economy. The legislation pays for these new steps, principally by postponing tax provisions benefiting U.S. multinational corporations. It also helps military families by clarifying that military base realignment and closure payments – added as part of the recovery act – are tax exempt.

BUILDING ON THE SUCCESSES OF THE RECOVERY ACT

Today’s steps build on the successes of the American Recovery and Reinvestment Act, signed by President Obama last February. The ARRA:

· Modernized and Expanded Unemployment Insurance: The recovery act included an unprecedented investment in unemployment benefits, including up to 79 weeks of benefits in the hardest-hit areas, a $25-a-week supplement to benefits, and incentives for states to expand coverage to part-time workers and take other steps to modernize their unemployment systems. The law also cut taxes on up to $2,400 in unemployment benefits and created a tax credit that pays 65 percent of health insurance premiums for unemployed workers. These provisions helped keep 800,000 people out of poverty, according to estimates developed by the Center on Budget and Policy Priorities.

· Created Jobs by Cutting Taxes on Businesses: The ARRA allowed small businesses to use the 2008 operating losses to get a refund of taxes paid in prior years. Like today’s provision, much of the revenue would be recouped in future years. The ARRA provision was projected to provide $5 billion in tax relief for small businesses in 2009 at a ten-year cost of only $1 billion.

· Expanded the First-Time Homebuyer Credit: The $8,000 first-time homebuyers tax credit enacted in ARRA has brought many new families into the housing market. Those buyers, in turn, have reduced the inventory of unsold homes and contributed to three months in a row of increases in home prices nationwide. Residential housing investment grew 23 percent in the third quarter, one of the contributors to positive economic growth.