The American Jobs Act is Not Deficit Neutral  One of the issues with the American Jobs Act is that while it is claimed that it will be deficit neutral this may not actually be the case as the costs are front loaded whereas the revenue is not. The Congressional Budget Office estimates it will be neutral by 2021 but will increase the deficit by $288 billion in 2012,11 meaning there is a lot of scope for mistakes in the revenue increases or even higher interest rates than expected meaning it contributes to the deficit. If it contributes significantly to the deficit then the economic benefit that the jobs act might create could simply be subsumed in greater repayments on bonds in the future by the U.S.  As such, any spending under the jobs act will have to be recouped elsewhere in the American system under taxation. Logically speaking, whilst extra government spending could potentially be more efficient, such sweeping changes that are claimed to cause such a significant amount of benefit to the American economy are almost certain to require extra governmental spending.  This case is enhanced by the fact that, when addressing the affordability of the act, Obama and his administration’s officials are vague about how the act will be financed. The act states “To ensure that the American Jobs Act is fully paid for, the President will call on the Joint Committee to come up with additional deficit reductions necessary to pay for the Act and still meet its deficit target. The President will, in the coming days, release a detailed plan that will show how we can do that while achieving the additional deficit reduction necessary to meet the President’s broader goal of stabilizing our debt as a share of the economy.”  If this is true, the financing of the act is dependent on a super committee finding the funding available somewhere in the American budget. If they are to significantly increase taxes they will likely find it difficult to pass such action, given how likely Republicans are to resist such an action. As such, implementing this Act is likely to end up cutting into the deficit significantly more.9