Tuesday, February 23, 2010

another jobs bill = an even longer recession...thanks!

From the AP's Stephen Ohlemacher (hat tip: C-J)...

It sounds great: A big jobs bill that would hand President Barack Obama a badly needed victory and please Republicans with tax cuts at the same time. But there's a problem: It won't actually create many jobs.

Even the Obama administration acknowledges the legislation's centerpiece — a tax cut for businesses that hire unemployed workers — would work only on the margins.

Senate Democrats are working this week to round up Republican support for the bill, which would exempt businesses from paying Social Security payroll taxes on new employees hired this year, as long as the workers had been unemployed at least 60 days. The tax break is a simpler, less expensive alternative to Obama's proposed tax cut of up to $5,000 for each new worker that employers hire...

Passage would give Obama the first tangible accomplishment of his renewed focus on job creation, which is also an important election year issue for Congress, with unemployment just below 10 percent. Senate Republicans are willing partners because the bill is filled with tax breaks they support.

But tax experts and business leaders said companies are unlikely to hire workers just to receive a tax break. Before businesses start hiring, they need increased demand for their products, more work for their employees and more revenue to pay those workers....

The Senate proposal is estimated to cost about $10 billion, which would add 80,000 to 180,000 jobs over the course of a year. The U.S. economy, meanwhile, has lost 8.4 million jobs since the start of the recession...

A lot of bad stuff comes out of this article:

-The Senate GOP continues to be a mess.

-Look how expensive (and temporary) the created jobs are-- even ignoring the impact on the debt, interest rates, etc.

-How cynical or stupid politicians are &/or how stupid we are if we applaud this.

-How this is not going to work-- and will only continue to delay our recovery. Thanks Bush/Obama/Congress for extending our country's woes to 26 months and counting...


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