Experts: Jobs Bill Won't Add Many Jobs

[OhioChick]

Snowy Weather Blocks Bill's Likely Passage
STEPHEN OHLEMACHER, Associated Press Writer
10:25 pm EST February 10, 2010

WASHINGTON -- It's a bipartisan jobs bill that would hand President Barack Obama a badly needed political victory and placate Republicans with tax cuts at the same time. But it has a problem: It won't 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.

As for the bill's effectiveness, 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.

"We're skeptical that it's going to be a big job creator," said Bill Rys, tax counsel for the National Federation of Independent Business. "There's certainly nothing wrong with giving a tax break to a business that's hired a new worker, especially in these tough times. But in terms of being an incentive to hire a lot of workers, we're skeptical."

Rick Klahsen, a tax expert at the accounting firm RSM McGladrey, said his clients need to see business pick up before they can hire more workers.

"If demand were increased, they are saying it will take care of itself because I will then have the motivation to go out and hire new employees," Klahsen said.

More: http://www.newsnet5.com/money/22522597/detail.html

[Oregone]

1. Exactly. Its not a necessary incentive on the bottom line

Rather, its a reward for the shareholders/owners of profitable businesses for doing what they should be doing in the first place (dictated by business conditions).

[Hardrada]

2. This is more trickle-down BS. Never has worked. Never will.

Reagan lives!

[msongs]

3. plus it supposedly will extend the patriot act (there's a BS name) for another year nt

[DJ13]

4. No jobs bill will work unless they solve the issue of outsourcing

Make work "shovel ready" programs are only short term, they wont do anything about long term employment.

They have their place, we need renewed infrastructure, but they never last long enough to solve a jobs crisis decades in the making.

[KILL THE WISE ONE]

5. if the bill is not written, analysis can not be definitive.

so it is just an opinion

[frazzled]

6. I disagree with the "need more work for their employees" part

Everyone I know who works at a company where layoffs were made over the last 18 months is finding themselves beseiged with the work those laid-off workers were doing, in addition to their own jobs. Companies are simply squeezing more out of fewer workers. Those who remain are doing the work of two people.

Eventually this cycle of downsizing will end. As overworked, dissatisfied employees begin to find a trickle of other jobs out there, they will leave, and it will cause a spate of hiring all around.

[bluestateguy]

7. That's why we need to require selected companies to hire

Not request, not ask, but require, mandate and compel.

[glinda]

8. add to that a demand that companies quit outsourcing

[Abq_Sarah]

9. Huh?

Not sure if you understand how this works....

If anyone wants to force me to hire more, they're going to have to kick in the money to cover payroll, workers comp, unemployment insurance, payroll taxes, etc... Telling someone they must hire if they don't have incoming revenue to support those hires is absurd.

[TexasObserver]

10. We must have a JOBS program. Pass something.

Every expert who opines is pushing for his or her point of view and agenda. That "tax expert" is a lobbyist for a business group. He has someone whose point of view he's representing, and it probably isn't the Democratic point of view.

[fasttense]

11. Let's face it, small businesses don't need tax cuts, they need customers. n/t