September 7th, 2011
02:29 PM ET
Washington (CNN) - A Democratic source familiar with President Obama’s jobs plan has given CNN details of the roughly $300 billion draft proposal. The plan will contain a combination of tax cuts, infrastructure spending, and aid to state and local governments.
In the working draft, the largest piece would be around $120 billion to extend the 2% payroll tax cut for all employees, with another approximately $50 billion to extend unemployment insurance, both of which expire December 31st. Small businesses would receive employer payroll tax cuts if they add more workers.
For infrastructure spending, there would be significant funding for building roads, as well as roughly $30 billion for school construction.
Finally, state and local governments would receive billions in aid to hire more teachers and first responders.
According to this Democrat, the plan aims to help the long-term unemployed get to work by giving small businesses tax credits for hiring them and possibly by encouraging states to use innovative jobs training programs to link them with businesses that offer on the job training. The goal would be to offer specific help to groups that have unique trouble finding work: low- income low-skilled people, seniors, veterans, among others.
The White House is still working on the exact details of the plan before the president delivers his speech to a Joint Session of Congress tomorrow night. President Obama will include proposals to pay for the plan.