Shock: Obama Plans A Bill That Doesn’t Accomplish Anything
I don’t want to mock too indiscriminately here…God knows how badly I would like to see a jobs bill that would foster a genuine hiring environment and help drag us out of the depression-like environment we’ve suffered with for so long, but really?:
It’s a bipartisan jobs bill that would hand President Barack Obama a badly needed political victory and placate Republicans with tax cuts at the same time. But it has a problem: It won’t create many jobs.
Even the Obama administration acknowledges the legislation’s centerpiece — a tax cut for businesses that hire unemployed workers — would work only on the margins.
As for the bill’s effectiveness, tax experts and business leaders said companies are unlikely to hire workers just to receive a tax break. Before businesses start hiring, they need increased demand for their products, more work for their employees and more revenue to pay those workers.
“We’re skeptical that it’s going to be a big job creator,” said Bill Rys, tax counsel for the National Federation of Independent Business. “There’s certainly nothing wrong with giving a tax break to a business that’s hired a new worker, especially in these tough times. But in terms of being an incentive to hire a lot of workers, we’re skeptical.”
We really are suffering a chicken and egg conundrum here. On the one hand we want to give businesses a reason to hire. A tax incentive (even though it’s just a left-handed unemployment benefit in many ways) is always nice to see if you’re a small business looking to gain market entry or deepen market share, but after all-you need to have the actual demand for your products before you’re going to need an expanded staff to get your widget out into the marketplace.
Problem is, Obama and his merry men don’t get that the Federal Government is NOT the answer to all problems. Uncle Sam cannot create demand…though they could certainly create an environment that might foster it…and the more interventionalism they try, the more they actually drive the market away from taking any risks. This plan, while well-intentioned, only succeeds in putting the cart before the horse:
Rys, of the National Federation of Independent Business, said the credit could speed hiring once employers need more workers. But, he said, NFIB members aren’t seeing many signs of improvement.
“Right now, business owners just don’t have customers,” Rys said. “Until you have work for the employee to do, there’s really less of a reason to hire a new worker.”
“If you hire them, they will come” is not a real strong position for the Feds here, I’m afraid.
So, guys on the Hill…are you looking at the deficit-both fiscal and trade-and the national debt? Looking at backing off a bit from micromanaging the Auto, Insurance, Finance, and Investment industries? That come up yet? How about loosening up some of the regulations out there that stand in the way of small investment and risk-taking on the part of the small to medium-sized companies with employees under 1,000?
EPA, ethanol, emissions standards…health care, stimulus, cap and trade, oil and gas exploration moratoriums, and letting Bush tax cuts expire…these things ring a bell?