Following up on an article from the American Spectator I commented on earlier, which discusses how the Jobs Bill probably won’t create any new jobs, I found an article by Donald Lambro at Townhall that also takes apart the jobs bill.
You do not need a doctorate in economics to know that such a tiny sum of money (in comparison to a nearly $4 trillion federal budget) isn’t going to create a ripple in a workforce that numbers more than 150 million people.
But the few tax breaks contained in this latest bill aren’t going to create many jobs. Employers would receive a $1,000 tax credit and a break from paying Social Security payroll taxes for the rest of this year for each worker they hire.
That isn’t a meaningful incentive in an economy where consumers aren’t buying much, cash registers are nearly empty and factory orders are few and far between. If business is poor, employers cannot afford to hire and won’t until conditions improve.
“Any company that can’t afford to hire today still won’t be able to hire,” said Rep. Tom Price of Georgia, chairman of the conservative Republican Study Committee. “Calling this a jobs bill is pure fraud.”
Making matters worse, these tax breaks come with some sticky strings attached from an administration that wants to micromanage everything in our economy. New workers have to be unemployed for at least 60 days. You get that tax credit if the hired worker stays on the job for at least a year (even if he can find a better job?).