Obama’s jobs plan: Small businesses get $5,000 tax credit for every new hire

The proposal, which must be passed by Congress, would allow small businesses to claim a 5,000-dollar tax credit for every new employee they hire and to be reimbursed for Social Security retirement taxes on increased payrolls.

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Obama’s jobs plan: Small businesses get $5,000 tax credit for every new hire | Raw Story

As some of you know I'm in Retail Management so I would consider myself to have some credibility when it comes business issues. What Obama and his supporters of this don't realize is that while yea a $5,000 tax credit sounds nice. It means jack when a business doesnt need a said employee or when said employee is more trouble than he/she is worth. While it may sound cold, a persons sole purpose 9 out of 10 times for running a business is money and profit. I know I wouldnt hire someone just to fill a quota (unless corporate mandated it) or just for the sake of giving someone a job. (which would be meaningless if I had no hours for them).

I don't see what's wrong with throwing out a tax credit to small business any time. But small business owners aren't going to go out and hire somebody to pay them $25,000 a year, just to get a $5,000 credit. I agree with the credit he proposes, I don't know if it will be something that actually influences job growth.

And then there is the question of what constitutes a small business. I'm sure that will be outlined, but the measuring stick for what is big and small varies. Just ask my wife.

WI Crippler said:

I don't see what's wrong with throwing out a tax credit to small business any time. But small business owners aren't going to go out and hire somebody to pay them $25,000 a year, just to get a $5,000 credit. I agree with the credit he proposes, I don't know if it will be something that actually influences job growth.

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I'm sure it could influence some decisions on the margins. Like if it would cost an employer $25,000 to hire an employee, and they calculated the employee could bring in $22,000 in revenue. Obviously they would hire the employee with the tax credit, even though they normally wouldn't.

I question whether this is a good idea though. Do we really want the government to be subsidizing employment that doesn't make economic sense on its own? I would much rather see the government just cut the corporate tax and offer some across-the-board tax cuts for other small businesses, instead of trying to micromanage the hiring process.

During the State of the Union, Obama mentioned continuing to allow small businesses to expense long-term capital investments when they do their taxes. I think this is a great idea, and I'd much rather see ideas like that instead of ideas like this one.

Kandahar said:

That's very true. I would much rather see the government just cut the corporate tax and offer some across-the-board tax cuts for other small businesses, instead of trying to micromanage the hiring process. During the State of the Union, Obama mentioned allowing small businesses to expense long-term capital investments when they do their taxes. I think this is a great idea, and I'd much rather see ideas like that than ideas like this one.

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I've always wondered where the line is crossed, from small business into large corporations. When I worked in insurance, I worked mainly property and casualty lines for commercial insurance. In order to justify the amount of risk for products sold, I had access to their sales figures and for workers comp I had access to their payroll. I worked with several businesses I would consider small, but according to some of the breakdowns of the current health bills in Congress, are not considered small enough for incentives or subsidies.

chevydriver1123 said:

Obama’s jobs plan: Small businesses get $5,000 tax credit for every new hire | Raw Story

As some of you know I'm in Retail Management so I would consider myself to have some credibility when it comes business issues. What Obama and his supporters of this don't realize is that while yea a $5,000 tax credit sounds nice. It means jack when a business doesnt need a said employee or when said employee is more trouble than he/she is worth. While it may sound cold, a persons sole purpose 9 out of 10 times for running a business is money and profit. I know I wouldnt hire someone just to fill a quota (unless corporate mandated it) or just for the sake of giving someone a job. (which would be meaningless if I had no hours for them).

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How about a tax cut... credit?

If tax credits work... letting companies keep more of their money to create jobs, then why not simply cut out the government micromanagement and just cut taxes?

.

zimmer said:

How about a tax cut... credit?

If tax credits work... letting companies keep more of their money to create jobs, then why not simply cut out the government micromanagement and just cut taxes?

.

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Excellent idea but Obama and his radical followers and the Liberals have created an anti business atmosphere and there are few businesses who can hire because business is way down everywhere.

Obama needs to back off all his radical plans like the PHONY Health Plan than does nothing but add to the cost of health care and grow government, forget about Cap and Trade because it's aim is to fix a HOAX and will result in more lost jobs and help plunge us into the worst depression recorded history.Of course Obama will never do the right thing because it is clearly his plan to use the Cloward and Piven Strategy with a goal to create a political crisis and to to overthrow capitalism, after they create a crisis. They are also using Saul Alenski rules remember Rahm Emanuel's ominous statement, "You never want a serious crisis to go to waste."

Obama is and the Socialist/Communist radials around him are very dangerous, and their plans are Anti-American from the word go. Nothing Obama says can be believed or trusted.

The $5,000 is worthless but it sounds good to the empty headed idiots that are going to follow Obama without ever thinking for themselves for two seconds because I fear they don't remember how.

Kandahar said:

I'm sure it could influence some decisions on the margins. Like if it would cost an employer $25,000 to hire an employee, and they calculated the employee could bring in $22,000 in revenue. Obviously they would hire the employee with the tax credit, even though they normally wouldn't.

I question whether this is a good idea though. Do we really want the government to be subsidizing employment that doesn't make economic sense on its own? I would much rather see the government just cut the corporate tax and offer some across-the-board tax cuts for other small businesses, instead of trying to micromanage the hiring process.

During the State of the Union, Obama mentioned continuing to allow small businesses to expense long-term capital investments when they do their taxes. I think this is a great idea, and I'd much rather see ideas like that instead of ideas like this one.

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He should just take the unspent stimulus money and loan it directly to American businesses at 0% interest.

A year later the community agitator finally gets around to addressing economic issues rather than ramming through his radical agenda. :roll: What a putz.

Let the fraud begin. Plenty of people will figure out a way to screw us out of these $5K tax credits, as they do with every other government program.

Is it 2012 yet?

Kandahar said:

I'm sure it could influence some decisions on the margins. Like if it would cost an employer $25,000 to hire an employee, and they calculated the employee could bring in $22,000 in revenue. Obviously they would hire the employee with the tax credit, even though they normally wouldn't.

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A business operator with even half ass business sense isn't going to hire a new employee, if the work for that new employee doesn't exist.

While this may benefit a business that actually needs to hire a new employee, as a tool to boost the economy, it's a total waste of time.

Ethereal said:

He should just take the unspent stimulus money and loan it directly to American businesses at 0% interest.

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A lot of the stimulus does exactly that...except they call it government contracts instead of loans. The problem with direct loans, as I see it, is that the government is ill-equipped to determine which businesses should get the 0% interest loans.

WI Crippler said:

I don't see what's wrong with throwing out a tax credit to small business any time. But small business owners aren't going to go out and hire somebody to pay them $25,000 a year, just to get a $5,000 credit. I agree with the credit he proposes, I don't know if it will be something that actually influences job growth.

And then there is the question of what constitutes a small business. I'm sure that will be outlined, but the measuring stick for what is big and small varies. Just ask my wife.

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Rather than throwing out a bogus one-time credit, reduce the overall tax rates so the business can save money on a permanent basis. That's money which will go into growing the business and lead to real permanent hiring.

chevydriver1123 said:

Obama’s jobs plan: Small businesses get $5,000 tax credit for every new hire | Raw Story

As some of you know I'm in Retail Management so I would consider myself to have some credibility when it comes business issues. What Obama and his supporters of this don't realize is that while yea a $5,000 tax credit sounds nice. It means jack when a business doesnt need a said employee or when said employee is more trouble than he/she is worth. While it may sound cold, a persons sole purpose 9 out of 10 times for running a business is money and profit. I know I wouldnt hire someone just to fill a quota (unless corporate mandated it) or just for the sake of giving someone a job. (which would be meaningless if I had no hours for them).

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i serioulsy doubt a business is going to hire someone they don't need. this is a good boost for those on the fence.

Well look at this...the community organizer doesn't have a clue what drives an economy. But I wonder what is the excuse for his advisors?!?!

Ethereal said:

He should just take the unspent stimulus money and loan it directly to American businesses at 0% interest.

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And put every bank that's still standing out of business? :doh