President Obama will promote tax cuts for small businesses Friday as he continues his renewed focus on job creation, but some of the nation's job creators are dubious.http://www.usatoday.com/money/perfi/taxes/2010-01-29-tax29_ST_N.htm
One sentence from his State of the Union address Wednesday night will become the focus of his visit to Baltimore: a $5,000 tax credit for each job created on a net basis in 2010, up to $500,000 per company.
. . . The White House pushed the proposal Thursday as an improved version of a $3,000 tax credit Obama promoted during his 2008 presidential campaign. It said more than 1 million small businesses would benefit if the one-year plan is enacted by Congress, at an estimated cost of $33 billion. The funds would come from the Troubled Asset Relief Program, which was enacted in 2008 to bail out banks and other financial institutions but has billions of dollars left over.
Of course, "There's only one problem: Business groups say the credit won't do much to boost hiring. "I really don't think it's going to be much of an incentive," says Bill Rys, tax counsel for the National Federation of Independent Business. "Mostly it is going to be used by businesses that would have been hiring anyway. . . Obama's original proposal languished in Congress last year. Democrats as well as Republicans said it could be subject to fraud."
The administration is increasing proposed spending on a previously ignored plan which is generally acknowledged to be ineffective, wasteful and easily subject to fraud.
It's obvious that the administration's "jobs plan" is to do something, anything, so that if and when the jobs outlook improves as part of the usual business cycle, Obama can claim credit.
The actual well being of the jobless, and the economy killing effects of out of control deficit spending? Not his concern.