President Obama came before Congress on Thursday night, Sept. 8, to talk to them and all Americans about his new plans for creating jobs and helping to deal with the unemployment crisis. Miss the speech or get lost in the all of the political lingo? Here are the 4 things you need to know about this new American Jobs Act, and how it could affect you and your family.

What is the American Jobs Act?

Basically, its Obama’s plan to create more job opportunities for teachers, construction workers, veterans.

•  Remember, while the President can give ideas for new legislation, he has to convince both Republicans and Democrats in Congress to pass the legislation.

What exactly will it do?

• Provide a tax break for companies that hire new employees
• Cut the payroll tax in half for small businesses
• Modernize 35,000 schools by putting in science labs and high speed Internet
• Improve transportation systems
• Create jobs by repairing bridges and buildings across America
• “cutting red tape” which means to remove the difficult and time consuming process and that new businesses have to go through to get money
• Change the tax code for individuals so the super wealthy like Bill Gates and Warren Buffet don’t have lower tax rates than middle class families
• Change the tax code on corporations so there are not as many loop holes for them to exploit

How can Obama expect this Act to pass since Democrats and Republicans don’t always agree?

• This plan is based on a bill created by a Democrat from Massachusetts and a Republican from Texas.
• The Payroll tax breaks were created by Former Republican President George Bush, and extending these breaks will make the Republicans happy
• The President claims that the Act already has support from 50 members of the House of Representatives

Does the President have any ideas that can be carried out in the near future?

While some things have to go through Congress for approval, there are some changes the President can do immediately. He plans to

• help contractors to the government get paid faster,
• make it easier for new businesses to raise capital, or money,
• work with Federal housing agencies so homeowners can refinance their mortgages on their homes with a lower interest rate. That could save them at least $2,000 a year per family!