A few days ago, I sent a letter to the editor of the Washington Post (which was probably ignored) regarding the appointment of Democrat Sander M Levin (D-Mich) as the new chairman of the House Ways and Means Committee. In the letter I praised Democratic Senator Levin for making job creation his top priority. In the letter, I wrote “Senator Levin wants to extend tax credits to businesses, extend the Bush tax cuts and offer temporary waiver of employer Social Security tax contributions for new hires.” I then added: “finally a democrat who comprehends the underlying economics of job creation!”
Today, Wednesday March 17th, I read in the New York Times: “…businesses… will be exempt from paying the 6.2 percent payroll tax on those employees’ earnings until the end of the year. If those workers stay on for a full year, businesses will also get a $1,000 tax credit. (The employee’s pay would still be subject to the usual personal income taxes.)…”
Unfortunately, as much as it pains me to say it, The democrats once again didn’t get it right away! A bill that gives businesses an incentive to create jobs but doesn’t give individuals any incentive to search for those jobs is worthless! Cutting taxes for businesses alone doesn’t accomplish much, we need to create incentives for individuals to actively search for these jobs and to want to re-enter the workforce. What’s the point of creating jobs if no one is willing to take them?
“This isn’t so much a jobs bill as it is a debt bill,” said Senator Judd Gregg, a New Hampshire Republican.
This jobs bill is lacking in many ways! What America needs is tax cuts for businesses AND individuals, coupled with massive government spending cuts. In terms of augmenting the value of being employed, and to encourage people to take up newly created jobs, why not cut unemployment insurance benefits?