OBAMA'S $33 BILLION TAX CREDIT

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.