How the Obama Jobs Act Would Affect Idaho’s Economy

According to a White House estimate, here’s how President Obama’s ‘American Jobs Act’ would affect Idaho’s economy:

• $160 million would prevent or reverse layoffs of about 2,500 teachers, police officers and firefighters.

• $190 million for highway and transit modernization projects could support at least 2,500 jobs.

• $94 million would upgrade schools, supporting as many as 1,200 jobs.

• About 40,000 Idaho businesses would see their payroll taxes cut in half to 3.1 percent on the first $5 million in wages.

• $20 million would revitalize and refurbish vacant or foreclosed homes and commercial buildings.

• $11 million would upgrade community colleges.

The outstanding issue, of course, is paying for these priorities in a Washington that’s been paralyzed by partisan fighting. But the Statesman talked with economists about the impact of this potential money:

The bill’s biggest, most immediate impact would be on teachers, police officers and firefighters, said Boise State University economist Don Holley.

Economist Don Reading of Ben Johnson Associates Inc. said the bill focuses on the right areas. Reading said the gap between the rich and the poor has widened almost to 1920s proportions.

“It’s one of the things dragging us down in the economy,” Reading said. “The act is attempting to attack that for small businesses and the unemployed. He’s aiming where we need it.”

Only three states — Wyoming, Utah and Alaska — have income inequality greater than Idaho, he said.