As a small business owner, I have a very hard time trying to figure out what in the world this administration is doing and how they can be so far out of touch with Main Street. In the real world most of us live in, whether you are operating a business budget, family budget or single life budget, one thing is pretty simple: YOU CAN'T SPEND MONEY YOU DO NOT HAVE! If things are tight, a business makes cuts, a family tightens its belt and does without certain things, and the single people stay home on the weekend.
After Monday's vote passed for this "Jobs Bill" I'd like to ask a few questions.
According to a Washington Post article, "The bill features four provisions, including a $13 billion measure exempting businesses hiring the unemployed from the 6.2 percent Social Security payroll tax through December and giving them another $1,000 credit if new workers stay on the job a full year"
Ok, so here is my crazy question. If businesses are laying off people, how will a credit to hire them help at all? Sure it's sounds nice of this Administration to be offering something in one hand, but it's the other hand reaching in your pocket that concerns me. Why would it help a business owner to take what amounts to a $5000 credit, when they will have to turn around and pay out nearly four to five times that in additional payroll expenses? What this Administration does not understand is that small businesses are cutting back on everything just to stay alive - from staff to finding an extra $10 a week they can cut out of their office supply bill. Unlike President Obama, small business ARE going through their budgets LINE BY LINE and making the sad, but necessary cuts to stay alive.
The Washington Post article also states that "another benefit to small businesses would be "a tax break for small businesses buying new equipment."
Buying new equipment? Are they kidding? Small businesses are closing and laying off long-time employees, many of whom are like family and yet this Administration thinks they can afford to buy new computers? Priceless...
The Washington Post article also states, "Business groups say companies are unlikely to hire workers just to receive a tax break. That means most of the tax benefits would go to companies that would have hired new workers anyway."
Nice job Mr. President!
1 comment:
The knock I've heard against this bill is that small businesses are just not likely to take advantage of a tax credit for hiring new workers because there isn't enough demand for products and services to justify it.
The administration has a lot of masters to please in the electorate. In this case, they seem to be trying to help unemployed workers by helping business first. This tack offends many progressives, and it doesn't seem to be winning the administration many friends in business, either.
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