This is a generalized version of precisely what President Obama is proposing -- a $447 billion jobs bill that will increase spending on hiring programs, and reduce payroll taxes; accompanied by deficit reduction measures that take effect in 2013, to more than cover the cost of the jobs bill.
But Elmendorf went even further, under questioning he ranked various tax cuts by their stimulative impact, and payroll tax cuts, benefitting employers and employees topped the list.
Many Republicans are resistant to the idea of using the joint committee as a vehicle to pass or pay for Obama's jobs bill, a significant chunk of which they oppose. But the legislation is written in such a way that -- if it passes -- it will count any extra savings that the committee finds toward the cost of its bill. And at a Tuesday press conference House Speaker John Boehner encouraged the committee to go well beyond its statutory requirement of finding $1.2 trillion in deficit reduction.
Combined with the fact that the White House is now signaling that President Obama would sign piecemeal elements of his jobs plan, it's feasible that this could be a path to passing at least some additional expansionary policies this year.
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