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Archive for Wednesday, August 31, 2011

Obama looks to spur private sector hiring

August 31, 2011

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— Limited in his ability to create jobs through direct spending, President Barack Obama is considering measures to encourage the private sector to free up its cash reserves and hire more workers to ease the nation’s unemployment crush.

As Obama prepares to unveil a new jobs agenda next week, his aides are reviewing options that would provide tax incentives to employers who expand their payrolls. That approach is a more indirect effort to spur the economy and relies less on government intervention and massive public works projects.

Among the proposals circulating in the White House is a $33 billion tax credit that Obama first proposed early last year but that Congress whittled into a smaller one-year package.

Under one version of the plan, employers would receive a tax credit of up to $5,000, subtracted from their share of federal payroll taxes, for every net new hire. White House officials caution that the overall jobs plan is still subject to change.

The tax credit, however, is a relatively untested idea. Congress passed a version in March 2010, known as the HIRE Act, which provided $13 billion in tax credits to qualified employers who hired new workers. But there is no government data to track its success.

“The HIRE Act was very small,” said Mark Zandi, chief economist at Moody’s Analytics and an occasional adviser to Democrats and Republicans. “It really didn’t add to payrolls.”

“It would have to be bigger,” he added. “Something more along the lines that the Obama administration proposed in 2010.”

While promising a major jobs package, Obama is hamstrung by budget cuts and a tight debt ceiling that he had a hand in negotiating.

As a result, economists predict that while the president’s initiatives could eliminate some drag on the economy and maintain the status quo, they won’t be enough to propel it to new heights.

Obama’s jobs package is designed to supplement other proposals already in the pipeline, including free trade agreements with South Korea, Colombia and Panama and the renewal of a highway construction bill.

Today, Obama will call on Congress to pass federal highway legislation before the current law expires Sept. 30.

Comments

AppologiesMyLiege 3 years ago

All he needs is a complex array of "Shovel Ready Jobs".

Besides, who can expect Obama to fix Bush's mess. Obama will never be able to fix Bush's mess. He may as well stick to playing golf, smoking cigs and swilling beer. He'll never be able to fix Bush's disaster so why try? Obama is way to smart for this low brow issue anyway. He would be better off teaching economics at Harvard or Princeton or continuing the efforts of ACORN.

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just_another_bozo_on_this_bus 3 years ago

Still randomly regurgitating, I see. I think you should change your bib, though. It's getting pretty gross.

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Flap Doodle 3 years ago

He's certainly done wonders for the employees of Glock and Winchester.

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just_another_bozo_on_this_bus 3 years ago

Actually, Obama and the Democrats compromise all the time. They just get no cooperation from Republicans in passing their Republican-lite legislation.

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Richard Heckler 3 years ago

The idea is to somehow create new economic growth. Tax/budget cuts and unemployment pay will never do that long term say like forever.

Let's think a combination of cuts and revenue generators. Jobs are revenue generators.

  1. Establish a major 4 year job program. USA industry does not want to employ americans. Therefore government MUST step up to the plate.

  2. I want my tax dollars putting people to work making money and creating new economic growth. This is a best bang for the tax buck. Put people to work rehabilitating federal highways and older sidewalks throughout the nation. And yes cleaner energy.

  3. Social Security Insurance adds nothing to the debt and seniors are paying for Medicare Insurance. Leave these successful programs alone.

  4. Stop the wars, cut all pork barrel subsidies/earmarks and terminate Bush Tax Cuts.

What is missing? A budget that would save $4 trillion.

Neither Tea Party neoconservative republicans nor democrats stepped up to the plate

When will democrats learn five things?

  1. Following the economic direction of Tea Party Neoconservative Christian Fundamentalists frustrates the entire planet

  2. That government MUST step up to the plate = establish a major 4 year job program that does not include USA industry and USA banks yet will employ millions upon millions. Think of the thousands of federal infrastructure projects that do need attention NOW!

  3. I want my tax dollars putting people to work making money and creating new economic growth. This is a best bang for the tax buck. Rehabilitate federal highways, rehab sidewalks in every community = healthy for Americans. Plus bring on clean collar employment.

    1. Retaining Bush tax cuts,not saving $4 trillion and putting forth zero job bills obviously was not the answer.

    2. What was missing from the deal? A budget that would have saved $4 trillion.

Plus Millions of new jobs that would create new economic growth.

The “Peoples Budget” that which does everything this country needs:

* Creates good-paying jobs
* Fully maintains our social safety net
* Invests in education
* Ends our costly wars
* Closes the tax loopholes that have made offshoring jobs profitable
* Ends oil and gas subsidies that pollute our country at taxpayer expense
* Creates a national infrastructure investment bank to help us make intelligent investments for the future

What the “Peoples Budget” does very specifically:

http://cpc.grijalva.house.gov/index.cfm?sectionid=70&sectiontree=5,70

http://www.npr.org/2011/04/15/135435883/the-nation-obama-should-fight-for-peoples-budget

http://www.democracynow.org/2011/4/14/while_obama_touts_compromise_with_gop

http://www.thenation.com/blog/159939/fighting-peoples-budget

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Flap Doodle 3 years ago

Forget the people's budget. Read thepeoplescube. The people's cube = waaaay more reality based than anything merrill links to.

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