Income and Jobs Action Act of 1985

Income and Jobs Action Act of 1985 - Declares that every adult American able and willing to earn a living has the right to a choice among opportunities for paid employment (part- or full-time) at decent wages or for self-employment. Directs all Federal agencies to plan and carry out their policies and programs so all adult Americans may exercise this right. Prohibits the Federal Reserve System or any other Federal agency from promoting recession, stagnation, or involuntary unemployment as a means of reducing wages and salaries or inflation.

Declares that every adult American unable to work for pay has the right to an adequate standard of living that rises with increases in the wealth and productivity of the society. Provides that no adult American shall be judged unable to work merely because of the unavailability of suitable paid employment opportunities at a given time or place or because of the lack of previous employment. Requires, in the absence of such opportunities and until such opportunities can be provided, that an adult American able and willing to work for pay shall be provided with whatever income is required to maintain a moderate level of living, as defined by the Bureau of Labor Statistics.

Directs the President, in the first annual message at the beginning of the first session of the Congress after the enactment of this Act, to include specific proposals for a Conversion Planning Fund, to be administered by agencies determined by the President. Provides that such Fund shall promote short- and long-term plans for coping with declines in civilian or military activities by developing specific policies, programs, and projects (including feasibility studies, education, on-the-job training, and inducements for necessary and desirable labor mobility) for the expansion of economic activities in sectors where additional or improved goods or services are needed. Requires, in addition to such other funds as may be authorized, that such Fund include no less than one percent of the amount appropriated for military purposes during each subsequent year.

Directs the President, within six months after the enactment of this Act and thereafter in each annual economic report and budget message, to transmit to Congress a staged program to create conditions under which the rights set forth in this Act may be enjoyed and to describe how the Conversion Planning Fund may be most productively used. Sets forth requirements for the design of such program, including provisions for locally based over-all planning.

Directs the President, as part of such annual program, to transmit to Congress a short- and long-range schedule for implementing the purposes of the Act. Requires that such schedule include reductions in: (1) the military budget; (2) wasteful tax expenditures and loopholes; and (3) interest rates and Federal deficits. Requires that such schedule include: (1) recommendations for the appropriate use and direction of public and private pension funds; (2) the creation or promotion of private and public development banks, particularly in neighborhoods and other areas of high unemployment and poverty; (3) the promotion of educational activities within each State in accordance with locally-based overall planning, with special attention to educational processes that promote and use the creative abilities of businesses, labor unions, nonprofit voluntary and cooperative organizations, and the unemployed; and (4) timetables for developing the conditions for progress in attaining the policy goals of this Act.

Requires that any outlays proposed under such plan and program be presented in terms not only of gross outlays, but also of net outlays, computed with a full estimation of specified factors.