{"id":276287,"date":"2010-02-04T11:25:23","date_gmt":"2010-02-04T16:25:23","guid":{"rendered":"http:\/\/www.szone.us\/f95\/tax-credit-hire-another-failed-stimulus-policy-pipeline-39040\/"},"modified":"2010-02-04T11:25:23","modified_gmt":"2010-02-04T16:25:23","slug":"tax-credit-for-hire-another-failed-stimulus-policy-in-the-pipeline","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/276287","title":{"rendered":"Tax-Credit-for-Hire: Another Failed Stimulus Policy in the Pipeline"},"content":{"rendered":"
On 02.04.10 07:30 AM posted by John Ligon<\/p>\n

\n<ahref="http:\/\/blog.heritage.org\/wp-content\/uploads\/money_stacks090211.jpg">\"\"<\/p>As President Obama continues campaigning for yet another round of stimulus it appears now that even <ahref="http:\/\/www.washingtonexaminer.com\/politics\/ap\/rank-and-file-house-dems-trash-obamas-plan-to-give-tax-credit-to-businesses-that-add-workers-83448287.htm">democrats are beginning to question the soundness of this strategy.* This new focus includes a $5,000 tax credit\u0097among other items\u0097 for any business that hires a new worker\u0097effective the year the legislation is passed. *Of course, the intended effect of this new policy may win some political points for the President and legislators, yet this effect does not override the fact that this maneuver is simply <ahref="http:\/\/uchicagolaw.typepad.com\/beckerposner\/2010\/01\/the-jobsubsidy-planposner.htm">bad economic policy.<\/p>\n

Creating a tax credit for hiring new workers will not create an incentive for already-struggling companies to begin hiring\u0097which is the overall intent of this policy. <ahref="http:\/\/uchicagolaw.typepad.com\/beckerposner\/2010\/01\/the-jobsubsidy-planposner.html">This could even result in some currently unemployed individuals remaining unemployed until the tax credit is passed into law, or similarly, some companies firing some workers and then re-hiring once the tax credit is passed into law.<spanid="more-25622"><\/span><\/p>\n

Businesses are not making the decision to not hire\u0097or lay off current workers\u0097because they simply want to keep their workforce smaller. Instead, as a result of depressed demand during the recession, <ahref="http:\/\/www.nfib.com\/Portals\/0\/PDF\/sbet\/SBET200912.pdf">companies are continuing to face lower sales and overall revenues.* Most companies\u0097particularly small- and medium-sized companies\u0097are making these employment decisions to <ahref="http:\/\/www.nfib.com\/Portals\/0\/PDF\/sbet\/SBET200912.pdf">shore up on costs to survive during the recession.* As an example, if a company determines that a worker is too costly to employ at $25,000, that worker will remain costly at $20,000, especially when there is no new work for the company.* This is holds for a business of any size.<\/p>\n

Business owners want to see the economy rebound so that they can begin productively employing more workers.* However, the net effect of this tax-credit-for-hire policy\u0097given the mix of other mandate costs and regulations companies stand to face with potential federal legislation\u0097<ahref="http:\/\/www.heritage.org\/Research\/Taxes\/wm2790.cfm">could turn out to be negative.<\/p>\n

Federal health care reform policy is still alive, including <ahref="http:\/\/www.heritage.org\/Research\/HealthCare\/wm2753.cfm">punitive employer mandate costs that have been attached to these bills and <ahref="http:\/\/www.heritage.org\/Research\/HealthCare\/wm2706.cfm">expanded Medicare payroll taxes.* The <ahref="http:\/\/www.heritage.org\/Research\/Taxes\/wm2703.cfm">estate tax\u0097which is a significant drag on American family-owned businesses\u0097has not been permanently repealed and <ahref="http:\/\/www.heritage.org\/Research\/EnergyandEnvironment\/wm2585.cfm">new energy taxes as part of proposed federal cap-and-trade legislation still loom. This is in addition to <ahref="..\/2010\/01\/01\/morning-bell-happy-tax-year">the other tax cuts and reductions that expired December 31, 2009 all of which provide incentives for small and medium-sized businesses to grow and productively employ workers.<\/p>\n

To get companies of all sizes to productively hire more workers\u0097and encourage entrepreneurs to bring new innovative and productive ideas to the economy\u0097President Obama and federal legislators should re-focus their efforts on tinkering with economic policies that actually <ahref="http:\/\/www.heritage.org\/Research\/Taxes\/wm2790.cfm">create the incentives for companies to form, innovate, and productively expand .<\/p>\n

http:\/\/blog.heritage.org\/2010\/02\/04\/…-the-pipeline\/<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

On 02.04.10 07:30 AM posted by John Ligon <ahref="http:\/\/blog.heritage.org\/wp-content\/uploads\/money_stacks090211.jpg"><\/p>As President Obama continues campaigning for yet another round of stimulus it appears now that even <ahref="http:\/\/www.washingtonexaminer.com\/politics\/ap\/rank-and-file-house-dems-trash-obamas-plan-to-give-tax-credit-to-businesses-that-add-workers-83448287.htm">democrats are beginning to question the soundness of this strategy.* This new focus includes a $5,000 tax credit\u0097among other items\u0097 for any business that hires a new worker\u0097effective the year the […]<\/p>\n","protected":false},"author":4292,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-276287","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/276287","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4292"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=276287"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/276287\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=276287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=276287"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=276287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}