Today I begin a 5 part series, analyzing the new Obama budget. I am going to be as fair as possible but I must admit that I am getting a little sick and tired of hearing how tough things were when he started. President Obama promised to change things and since he took office the deficit has tripled under his watch.
In today's report I look at the proposed $5000 per new hire tax credit that is supposed to stimulate economic growth. I view this as an artificial attempt to improve the unemployment numbers and it is logically absurd. Hiring employees does not create growth but lower taxes can increase profitability which could lead to jobs.
This plan offers little to small businesses and even less if you are a start up. Companies that take advantage of this credit are most likely already doing well and not expanding as a result of the credit. This will cost the federal government millions is revenue and result in a net loss is profits for any small business looking to expand.
Stay Sharp!
RELATED STORY: Here is $5000, go hire someone
