Friday, January 29, 2010


During his State of the Union speech on Wednesday, President Obama brought up one point that really interested me. I guess the reason that it made me wake up from the mind-numbing stupor that the rest of the speech had put me in is because ... I had advocated it from the time of the first stimulus program.

The tax credit for businesses that hire new employees should have been part of the stimulus program from the beginning. Not that I don't think that building tunnels under roadways in New England so that frogs can safely cross the road was not a good use of my tax dollars (NOT!), but encouraging companies to hire workers ... Now there is an idea that will improve the employment situation in the United States.

Of course, besides being late, there are several other things the President has gotten wrong on this idea. Feel free to add others if I miss anything.

  1. The money should be taken out of the unspent portion of the pork-laden stimulus package ... not the TARP money that has been paid back. Use the TARP money to pay down our national debt.
  2. A company can hire a worker that makes $7000.00 a year and get the entire $5000.00 tax credit ... Why would we want to do that? We need full-time job creation, not part-time jobs.
  3. Companies would be capped at $500 million dollars in tax credits so that big businesses would not be getting the lions' share of this money ... If I'm an unemployed worker ... I don't care if my paycheck comes from IBM or Moe's bar and grill, a job is a job. Don't cap a large company ... if it wants to hire, let it.
  4. The current proposal has provisions for tax incentives to companies that increase pay ... this is estimated to account for more than half of the $33 billion. Drop this provision and use it all for the creation of full-time jobs. At $5000.00 per job, this translates into 6.5 million jobs ... Voila, back to 5% unemployment.

As usual, the Democrats can screw-up even a great idea. Don't let them. Call your representatives and offer your support for this idea ... but ask them to make some changes.

Sphere: Related Content


Debbie said...

The "tax cut" that's not really a tax cut. I'm not sure he really understands what a tax cut is.

Today he was questioned by the GOP about an across-the-board tax cut, and his response was unintelligible. He obviously had no idea what the definition of an across-the-board tax cut was.

Right Truth

Realliveman said...

I forgot how awesome this blog is! I'm me Mike from Mike's Homefront. But I have moved to

Sup Paul??

christian soldier said...

for the -"most insignificant blog on the internet." :-) you certainly have an excellent (significant) take on things!!!
Thanks for stopping by and reading mine...

Ron Russell said...

Don't wet your pants yet my friend I suspect these things will be tied to pay increases for new employees which would of neccessity require pay increases for the existing ones which would lead to higher prices for the service rendered or the product produced, causing that company to be less competative, etc.---get the picture. Far too many strings will be places on the money, giving the government too much say so in the internal affairs of the company---no free lunch here.

Nice looking blog. Thanks for your recent visit to TOTUS.

Jackie said...

Thanks for your recent visits to For Love of Home. I've almost let my blog go by the wayside due to lots of reasons...but mainly being uninspired. I'm hoping this is a passing thing. I've got 5 years of my life wrapped up in that blog.

As far as making a comment on your post, I have no input that's worth a plug nickle. I'm so sick of the lies that I hear, and the cover-ups, and the under-the-table and behind the door deals I just want to throw up.

Maybe I'll be inspired again, soon. So glad to see you back spouting the good news.

Bloviating Zeppelin said...

Debbie: today, most Demorats think a "tax cut" is simply when you don't ADD to a given budget unit. They call THAT a "tax CUT."

I couldn't watch the SOTU. I'm starting to get to the point where I'm so sick of hearing that man's voice, it's like nails on a chalkboard, skreeeeeeeeeeeekk.


WomanHonorThyself said...

The "tax cut" that's not really a tax cut...exactly!

nejat@israel said...

and american companies will be double taxed and foreign-not. very pro-american

Tapline said...

Paul, Sorry I have been tainted and believe nothing up front...stay well...

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