Support Builds for Tax Credit to Encourage Hiring

[TomCADem]

Source: NY Times

The idea of a tax credit for companies that create new jobs, something the federal government has not tried since the 1970s, is gaining support among economists and Washington officials grappling with the highest unemployment in a generation.

The proposal has some bipartisan appeal among politicians eager both to help their unemployed constituents and to encourage small-business development. Legislators on Capitol Hill and President Obama’s economic team have been quietly researching the policy for several weeks.

“There is a lot of traction for this kind of idea,” said Representative Eric Cantor of Virginia, the Republican whip. “If the White House will take the lead on this, I’m fairly positive it would be welcomed in a bipartisan fashion.”

In addition to the economists working on the proposal, some heavyweights support the concept, including the Nobel laureate Edmund S. Phelps, Dani Rodrik of Harvard and former Labor Secretary Robert B. Reich.

Read more: http://www.nytimes.com/2009/10/07/business/07tax.html?_r=1&hp

[tblue]

1. Good idea, I think. I sure would like to see more jobs in infrastructure, too.

Robert Reich and Paul Krugman both seem to think we need to put a lot more into the stimulus for it to really work.

[Hulk]

2. Repugs and the capitalist corporate pigs understand "tax breaks"....

Nobody says it, but it should be an obvious talking point. Do you honestly think the business community, corporate firms are out to HIRE ANYONE and make this administration look like they are making any sort of progress with the job situation? Not sure if that is clear.

If YOU are a repug...or you align yourself with this capitalistic "bottom line only" mentality, then I am saying that YOU have NO intention of hiring one more person off the unemployment lists. You are out to make this administration look as bad as possible. Banks don't loan to small businesses and ordinary persons, because they WANT the public and small business to slow down.

BUT....offer those same greedy sons of bitches a "tax break", the opportunity to get PAID for their efforts..they would sell their own mother into prostitution if they thought they could turn a buck for it.

Disgusting. It's an uphill battle, and the right wing, repug cons are going to fight progress any way they can.

[dmr]

3. I remember reading a couple years ago here on DU that some

states were having problems with companies that received state/local tax credits/incentives so long as they hired new employees. The problem was the companies took the money but did not hire, they outsourced the work.

Like I said this was a while back so I don't have a link, nor do I know of the outcome. Maybe someone else remembers and knows more.

Edit: grammar

[aquart]

4. Jobs? The economy needs jobs? The economy needs jobs HERE?

What a strange new concept for Washington.

[Selatius]

5. I remember that the US abandoned these ideas when it abandoned the idea of "full employment"

Full employment in a mixed economy with free markets or even oligopolistic or monopolistic markets is very unlikely unless the economy is in the middle of waging a world war, but it's not impossible to have an economy with very low unemployment as opposed to no unemployment.

[Skittles]

6. cut all tax breaks for companies pimping off jobs overseas

START THERE

[zogofzorkon]

7. By all means give a tax credit to the corps and increase the

tax burden on those who work so it can be paid for. Sounds like a plan to me, a plan that transfers still more money to those that have more than enough.

[bemildred]

8. How about a higher tax rate for corporations that don't hire?

Fix the deficit AND create more jobs.
:-)