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President Obama's American Jobs Act and AAPI Communities

Last Thursday, President Obama addressed a joint session of Congress and called upon the support of Congress and the American people for the American Jobs Act. At a time when one in six Americans live in poverty and unemployment - a figure that doesn't account for underemployment and workers that are no longer looking for work - is at 9.1%, the President called for a $471 billion package that aims to address unemployment and the ongoing recession. The White House Initative on Asian Americans and Pacific Islanders recently circulated a fact sheet about how the American Jobs Act, if enacted by Congress, would specifically aid Asian American and Pacific Islander communities. (WHIAAPI Fact Sheet)

Anyone can access the full-text as well as summaries of the proposed legislation at http://www.americanjobsact.com/. However, AAPI readers should be frustrated to note that while there are fact sheets on the website that list the proposed targeted benefits to other communities of color and minority groups, the website does not include the fact sheet linked above or any other resources explaining the specific effects that the American Jobs Act would have on APAs. While nearly all groups of Americans have been hit hard by this recession, various Asian and Pacific Islander communities have been hit harder than most, and in many complicated, different ways. As Congresswoman Judy Chu (D-32nd, CA), the Chair of the Congressional Asian Pacific American Caucus, recently noted:

In spite of the dangerous myth that Asian Americans and Pacific Islanders (AAPIs) have been largely untouched by this recession, our community has been devastated by long term unemployment, high rates of foreclosures and downward mobility. Many who have spent decades working to attain the American dream are now falling out of the middle-class or struggling to make ends meet.”

[. . .] Since the recession began, AAPIs have experienced a 54 percent drop in median household income and the largest decline in homeownership of any racial group. As a whole, AAPIs also remain unemployed for longer periods of time than any other group. Certain AAPI communities, such as American Samoans, also have unemployment rates that are nearly twice the national average.

A rising tide does not automatically raise all boats equally, and crashing waves sink the most vulnerable dingies. I have to admit that I find it frustrating that the American Jobs Acts website does not include information on how AAPI communities will be served. In any case, I'd like to commend the White House Initiative for circulating this factsheet about these very questions. Like with much economic legislation, AAPI communities would benefit from extension of unemployment insurance, payroll and other tax cuts for middle class Americans, and other general proposals. Here are four sections of the fact sheet that I found particularly promising and pertinent to struggling AAPI communities:

Targeted support for the long-term unemployed could help at least 235,000 AAPIs who have been looking for work for more than six months: Certain segments of the American population have faced significant periods of unemployment – with at least 235,000 of unemployed AAPIs had been out of work for more than six months. To help them in their search for work, the President is calling for a new tax credit for hiring the long-term unemployed.

Support for subsidized jobs and summer/year-round jobs for Asian American youth – for whom unemployment is above 13.8%. In an environment with 13.8% unemployment among Asian American youth under the age of 25, the President is proposing to build on successful programs like the TANF Emergency Fund to create jobs and provide training for those hardest-hit by the recession. The program will include dedicated funds for outlying areas, including the Pacific Island areas.

Providing Tax Cuts That Will Help AAPI-Owned Small Businesses: The President is proposing tax cuts that will go to every small business nationwide – including AAPIowned small businesses. These tax cuts will cut employer payroll taxes in half for these businesses, provide them with an added bonus for increasing their payroll, and extend 100% expensing provisions that provide an incentive for investment. Example: A small business has 40 employees, with an average salary of $40,000 a year – meaning a total payroll of $1.6 million. The business adds another 20 employees with the same average salary. Under the President’s plan, the business would receive a $49,600 tax cut on the payroll taxes of its existing

Subsidized Employment Opportunities for Low-Income Individuals Who Are Unemployed: This effort builds off the successful TANF Emergency Fund wagesubsidy program that supported 260,000 jobs through the recovery. According to ananalysis by the Center on Budget and Policy Priorities (CBPP), this flexible programallowed States to reduce the cost and risk associated with new hiring, encouragingprivate-sector businesses to hire new workers. The President’s plan includes supportto allow states and outlying areas, including Pacific Island areas, to providesubsidized employment programs.

Read the rest of the fact sheet here and the text of the proposed AJA here. I know that politically, this or similar bills that help working and middle-class families will be a tough sell to Republican ideologues, but here's to hoping that something gets done. We need it.

Photo Courtesy of White House: http://www.whitehouse.gov/administration/eop/aapi

About me: Hey, I'm Dayne, and I'm a recent graduate of Pomona College. In college, I was active in AAPI student organizing as well as community work. I'm currently based out of Washington, D.C., and I'll be posting two to three times a week with the latest in progressive and AAPI political news and policy analysis, as well as spotlight features on young community leaders. Leave comments and share with friends! Follow me on twitter @ dayne4progress

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