Ryan Young at the American Spectator takes a look at the new Jobs Stimulus Bill, and asks a simple question: Will it actually create any jobs?
The hope is that the new spending will create jobs. But hope is not the same as reality. Remember: anything that Washington giveth, it must first taketh away from somewhere else. This jobs bill is a zero-sum game. All those new jobs that politicians will be showing off for the cameras will have come at the expense of other jobs elsewhere. On net, they’re not creating a thing.
The spending bill contains a host of tax cuts. Besides the payroll tax break, small businesses can get a $1,000 tax credit for hiring new workers and keeping them on for at least a year. Tax cuts are often a good thing. Unfortunately, these aren’t really tax cuts.
Because these tax breaks and credits are deficit-financed, they will have to be repaid later. And there is only one way to do that: taxation. Government can borrow and borrow all it wants, but eventually it has to pay the money back. A tax cut today is a tax increase later. Don’t be fooled.
So not only is the spending bill zero-sum as far as job creation goes, it will actually hurt the economy down the road because future taxes will have to be hiked to pay for it …
Young looks at the so-called tax breaks and other benefits of the stimulus bill, and how most of them are unappealing on the short term and harmful on the long term. Read the whole thing here.