Skip to comments.Employers Say Jobs Plan Won’t Lead to Hiring Spur
Posted on 09/10/2011 1:57:53 PM PDT by newzjunkey
The dismal state of the economy is the main reason many companies are reluctant to hire workers, and few executives are saying that President Obamas jobs plan while welcomed will change their minds any time soon. ...
As President Obama faced an uphill battle in Congress to win support even for portions of the plan, many employers dismissed the notion that any particular tax break or incentive would be persuasive. Instead, they said they tended to hire more workers or expand when the economy improved.
Companies are focused on jittery consumer confidence, an unstable stock market, perceived obstacles to business expansion like government regulation and, above all, swings in demand for their products.
You still need to have the business need to hire, said Jeffery Braverman, owner of Nutsonline, an e-commerce company in Cranford, N.J., that sells nuts and dried fruit. While a $4,000 credit could offset the cost of the companys lowest-cost health insurance plan, he said, it would not spur him to hire someone. Business demand is what drives hiring, he said. ...
To the extent these measures could be used, many employers said they would most likely support people whom companies were planning to hire anyway. ...
For others, the math just does not add up. Roger Tung, the chief executive of Concert Pharmaceuticals, said the company, a privately held biotechnology firm with 45 employees, would save $150,000 a year from the proposed corporate payroll tax deductions.
But that is still not enough to cover the cost of hiring even one additional employee at the Lexington, Mass., company, Mr. Tung said, once benefits and other expenses besides salary are included. He can hire, he said, only when investors become confident again and the company can raise more money. ...
(Excerpt) Read more at cnbc.com ...
“We have to pass it so we can read what’s in it” sorta takes on a whole new meaning! “If you pass it, it will be written.”
What, not even government worker union jobs, AFSCME and the like???
Unions are 0bama's last hope for support of his reelection.
Businesses don’t want to see stimulus. They don’t care about make-work jobs for union scumbags, nor do they care about piddly tax breaks. They want to see the overall economy improve. Of course, that won’t happen until OBAMA is fired and gone.
Ignore my post.
I get it.
After hearing another dismal Jobs bill proposal, it may dawn on some of the Democratics and their supporters to run someone who understand what it will take to actually effect private sector growth. A list of who would be potential 2012 Democratic Candidates,
those 39 House Democrats who voted against the Health Care bill,
add the 2008 Democratic Presidential Candidates,
allowing too, for there to be some from outside government, like a Steve Wyn or Donald Trump.
Here’s the current field;
447 billion divided by 1 million = four hundred forty-seven thousand
Contray to the libtard progressive idiot economists which proclaim it will create a million plus jobs....ironic. /s =.=
Who are you going to believe, Obama’s experts or the employers? Obama’s experts all have degrees. What do employers know? It’s not like they’re the ones doing the hiring.
This article was on the front page, above the fold, on dead tree edition today.
The job bill is designed to save Obummer’s and the other dem’s jobs. Any other benefit is purely coincidental.
one word that is scaring the pants off business...OBAMACARE!
If a business gets a tax break to hire new workers, these new workers still cost the business money and if there is not any additional productive work to do the new employees are dead weight and reduce the company’s profit.
"Will" should be "would."
Tax credits don’t help a business that is in startup mode, that is with little or no income and certainly no profit. This mode can take years to grow out of.
I find it pitiful that the real measures that could help business are totally off the socialist’s radar screen:
a) Startups require “angel” investments. However, thanks to SEC rules, only Accredited Investors can be solicited. And recently the SEC made the criteria to qualify as being Accredited even more stringent, thus reducing the pool of potential investors;
b) Investments in startups are full of risk, and only when a successful “exit” is made can an angel investor recover his investment and maybe a also a gain, which of course is subject to tax. However, the investor can only re-invest from what he has left over after taxes and after absorbing losses.
c) While government is happy to be your tax partner on any gains, it limits deductions of losses. So losses don’t really offset gains.
All this works to greatly impede the ability of startups to get funded, and startups are where a lot of job creation occurs. This is not rocket science, yet time after time, supporters of big and Bigger government only propose incentives that are of little or no effect. It would be far better to just exempt capital gains from taxation if they were made in the first 5 years of a startup’s life, than to propose credits and deductions.
The acme examples of worthless proposals came from Bill Clinton, who loved “targeted tax credits”. ya right. Propose a credit with great fanfare but when you read the fine print you find that it is so narrow that few would qualify. Worse, the credit requires paying your CPA to fill out a 6 page form that has 100 pages of instructions. The CPA’s bill hardly covers the credit.
Sad. And they wonder why we have no new job formation.
The numbers for August where a net zero. The puny number of jobs created in the private sector where offset by job losses in the public sector.