There must be bipartisan collaboration to jump start job growth, and the president has taken the lead with his proposed American Jobs Act. But the questions remain, would it work and can we afford it? Small business owners still doubt that it will help them create new jobs.

None of the previous stimulus projects of the past few years have created jobs, although the administration claims that they saved jobs. Who knows? What we do know is that a double-dip recession in early 2012 looks possible, unless positive steps are taken to open up job growth.

Even if the Democrats and Republicans can agree on a bill, government programs take a long time to gear up. We need some near-term job solutions, because we cannot wait for just long-term results. We need action now.

The president wants the job act approved immediately. That seems good. But the plan to get people back to work, while ambitious, is vague on how to pay for it. It is a $447 billion package, which contains a cut on the payroll tax to 3.1 percent for small businesses doing sales up to $5 million, as an incentive to hire new employees out of work at least six months. In addition, small businesses will get tax credits for each new job.

A third extension of unemployment benefit payments is also included, for the five million people still unemployed. Also in the package is $35 billion designated for state aid to prevent up to 280,000 unionized teacher layoffs and for hiring tens of thousands more; $50 billion is to be allocated for highways, railroads, and bus and air transportation projects; and additional billions of dollars to modernize 35,000 schools.

A jobs act could give hope to unemployed young men, women and minorities, 18-23 years of age. They have unemployment rates of up to 25 percent. But how will the American Jobs Act be funded?

The administration proposes to eliminate some tax deductions, such as for mortgage interest, business travel and charitable deductions, for people who earn more than $200,000 a year. Corporations and the wealthy will be taxed more, and this is very disturbing to many small business owners.

If the jobs act is successful, it could give President Obama an edge in the 2012 presidential elections, with support from labor unions, in return for the 280,000 unionized teachers’ jobs. On the other hand, if the proposal fails to be adopted, or does not create more jobs, it could spell his defeat for re-election. 

Many portions of the jobs act deserve bipartisan support for job growth, while some parts do not. The infrastructure projects proposed are similar to the old WPA public works of the 1930s. The WPA put some people to work, but it took 10 years to get out of the Great Depression and build back jobs. President Obama probably feels in can be done again.

The AJA will have difficulty in passing many of its provisions, especially because of the cost. The prior stimulus packages did not work successfully. Most Democratic legislators do not want to make cuts to Medicare or Medicaid, and most Republican legislators want no tax increases, or loophole closings, at all. Both are wrong.

Our economy is complex, and job creation is difficult to predict. One small business on the East Coast, which lost almost $1 million in 2009, had to lay off almost 20 percent of its employees. Then last year, in 2010, it made back its entire loss without doing more business, because it had fewer employees. Many of those lost jobs will not come back, because during the downturn, the business automated, and became more efficient and profitable. 

What we do know is that some things do work. Our young people need to be trained in technical job skills that will increase their employability. Bank loans need to be available to small businesses. Regulatory codes that disadvantage small businesses need to be eased or eliminated.

Most importantly, lowering business tax rates will encourage business growth. This is the best way to add more jobs. And we need to put money into research and development that can develop jobs in new fields. We also need to increase wages for present employees, to maintain their standards of living against inflation.

Intelligent bipartisanship should approve some parts of the jobs act quickly, before the end of 2011. The near term for job growth does not look bright but it is better to start and to try, than to do nothing at all.

— Bernard Featherman is a business columnist for the Journal Tribune and former president of the Biddeford-Saco Chamber of Commerce.