$33 billion tax credit to boost employment

Jan 2009
5,841
50
#1
President Obama has unveiled a new plan that would provide tax credit for companies who hire new employees. The plan comes in light of a big Democrat loss in Massachusetts and growing worries about the employment number.The focus with this proposal is to get small businesses to start hiring more.

full story here: http://www.reuters.com/article/idUSTRE60S0BH20100129

Thoughts?
 
Mar 2009
2,751
6
Undisclosed
#2
President Obama has unveiled a new plan that would provide tax credit for companies who hire new employees. The plan comes in light of a big Democrat loss in Massachusetts and growing worries about the employment number.The focus with this proposal is to get small businesses to start hiring more.

full story here: http://www.reuters.com/article/idUSTRE60S0BH20100129

Thoughts?
Where have I heard this before?
 
Feb 2010
360
0
United Kingdom
#4
This is what Obama does when he realizes that credits instead of hostility to businesses are good for the country and it definitely prevents unemployment.
 
Mar 2009
2,187
2
#5
This is what Obama does when he realizes that credits instead of hostility to businesses are good for the country and it definitely prevents unemployment.
I still would like to know why it took him so long to realize that. The right timing for this would have been during the bail-out stage last year in January. When unemployment was at its most critical stages.
 
Feb 2010
360
0
United Kingdom
#6
I still would like to know why it took him so long to realize that. The right timing for this would have been during the bail-out stage last year in January. When unemployment was at its most critical stages.
Because his own beliefs to follow, and when you have to break with the principles of those because you realize something else is better, then I can understand it's embarrassing. I hope this means Americans will see what Obama is really doing, is to actually sneak in Republican policies in his plans because he realizes his own are too business hostile. And the next when elections come Americans will choose the original (Republican) instead of the copycats (Democrats).
 
Jan 2010
131
0
Alaska
#7
This isn't going to have nearly the impact Obama and company think. As a business owner, a $5,000 credit is trivial in the total cost of an employee at my company. Maybe a low hourly wage company (McDonalds, etc.) might make use of it, particularly if they get the full credit for hiring a less than 40 hour a week employee. But as far as full time, long term employment at a "living" wage - forget it.

In December, we actually stopped an expansion that would have hired 9 new employees this quarter because of the policies coming out of Washington. Talk of a new 2-8.5% payroll tax, removing the limit on income subject to social security tax, increasing the tax on "high income" earners (which is a direct tax on small business), carbon tax schemes, years of uncertainty on health care costs, there is no way to predict what labor costs will be. We are profitable now, we don't need to expand, and the prudent move is to maintain the status quo.
 
Mar 2009
2,187
2
#8
@Dave. Good point, especially if one compares a few billion dollars to 1.2 trillion. If he had put most of the 1.2 trillion to employment incentives, that would have made much more sense.
 
Jan 2010
131
0
Alaska
#9
@Dave. Good point, especially if one compares a few billion dollars to 1.2 trillion. If he had put most of the 1.2 trillion to employment incentives, that would have made much more sense.
$1.2 Trillion is about how much the government receives in personal income tax in one year. If the govt had given a 50% across the board reduction on income tax for 2 years, wow that would have been a stimulus. But if they did that, they lose control of all that money, no social engineering, no paying off political favorites - and there would be tremendous pressure on the feds to leave the reduction in place after the 2 years.
 
Mar 2009
2,751
6
Undisclosed
#10
$1.2 Trillion is about how much the government receives in personal income tax in one year. If the govt had given a 50% across the board reduction on income tax for 2 years, wow that would have been a stimulus. But if they did that, they lose control of all that money, no social engineering, no paying off political favorites - and there would be tremendous pressure on the feds to leave the reduction in place after the 2 years.
And they sure would not want to do that.:rolleyes:
 
Mar 2009
2,187
2
#11
$1.2 Trillion is about how much the government receives in personal income tax in one year. If the govt had given a 50% across the board reduction on income tax for 2 years, wow that would have been a stimulus. But if they did that, they lose control of all that money, no social engineering, no paying off political favorites - and there would be tremendous pressure on the feds to leave the reduction in place after the 2 years.
Right, most of all, it would have been too simple. People would have understood what the Government was doing. ;)