Obama Shelves Jobs-Credit Proposal

[Pale Blue Dot]

Source: Washington Post

Bowing to widespread Democratic skepticism, President-elect Barack Obama will drop his bid to include a business tax break he once touted in the economic stimulus bill now taking shape on Capitol Hill, aides said last night.

Obama suggested the $3,000-per-job credit last week as one of five individual and business tax incentives aimed at winning Republican support. He proposed $300 billion in tax relief in a bill that could reach $775 billion, and he resurrected the jobs-credit proposal from the campaign trail as one of his main provisions.

Republicans reacted favorably to the higher-than-expected ratio of tax breaks to spending for road projects, alternative energy production, health-care technology and unemployment benefits. But they offered mixed reviews of his specific tax proposals and floated their own, including cuts in corporate and capital gains taxes.

Stronger opposition came from Democrats, who dismissed the $3,000 credit to employers for every job created or saved as ripe for abuse and difficult to administer. When no champion for the proposal came forward, the president-elect decided to sideline the incentive.

"We've always said we're open to other ideas. This was never set in stone," said a senior Obama adviser of the decision.

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2009/01/12/AR2009011203298.html

[shadowknows69]

1. So the small businessman takes another fucking

[Dawgs]

2. What? Small businesses can be barely afford to keep their doors open.

A $3,000 tax credit to hire someone is not what they need right now; and it's not something they can afford.

Creating jobs so people can buy the small business merchandise is what's needed.

[shadowknows69]

3. As a former small business owner I know I sure could have used it

[PassingFair]

5. As a former small business owner myself, I would have preferred...

National Health Care.

Between the bad economy and the
rising costs of health care, I
had to shutter my business and
get a "real" job.

:puke:

[shadowknows69]

6. You and me both friend

I never even got to the point where I could offer my employee, much less myself health care. That's what I get for trying to succeed during the Bush administration I guess.

[iamjoy]

7. Right On

A $3,000 tax credit for jobs created would mostly benefit Wal-Mart (and the like). Oh sure, they hire people, but the people they hire often still need public assistance.

Most companies spend about $3,000 per individual on health insurance - I am only talking about direct costs, not administrative. Also, this doesn't include any family coverage. So, if we had some sort of national health care program, that would save companies thousands per year (per employee)

[JeanGrey]

8. Don't you love it? What a difference a few weeks make.

[DRoseDARs]

4. Link to earlier discussion in GD:P

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=132&topic_id=8083796

[antigop]

9. and in the tech industry they can give those jobs to h1-b visa holders

Did it say anywhere that to get the credit, the job couldn't go to an h1-b visa holder?

[OhioChick]

10. Good Point.

Guess they're creating another "loophole."

[Azlady]

11. With the current econmic situation -

I was concerned about that tax credit and just how it would be loopholed to death. In theory it is a great idea, but man I can see the big corps just taking and running with this. There must be a better way to get workable funds into the small businesses. I have no idea how though...