Shouldn’t a "jobs bill" create jobs ? … hmmm

Spend, spend, spend … sky is the limit !

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Excerpted from AP: Jobs bill won’t add many jobs, Feb 10, 2010

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.

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.

“Right now, business owners just don’t have customers. Until you have work for the employee to do, there’s really less of a reason to hire a new worker.”

The bipartisan Senate plan would exempt businesses from paying a 6.2 percent Social Security tax on the wages of new employees, as long as the workers have been unemployed at least 60 days. The tax break would run through the end of the year.

A company could save a maximum of $6,621 if it hired an unemployed worker after the bill is enacted and paid that worker at least $106,800 — the maximum amount of wages subject to Social Security taxes — by the end of the year. The company could get an additional $1,000 on its 2011 tax return if it kept the new worker for at least a full year.

The nonpartisan Congressional Budget Office … estimates that such a tax break would generate only eight to 18 full-time jobs per $1 million in tax breaks.

The Senate proposal … 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.

In addition to a tax break for hiring workers, the Senate package would extend unemployment payments for people without jobs for more than six months as well as subsidies to help the jobless continue paying premiums for health insurance they had been getting through their former employers.

It also would extend through 2010 about $33 billion in popular tax breaks that expired at the end of 2009, including an income tax deduction for sales and property taxes and a business tax credit for research and development.

But,  lawmakers in both parties still could claim tangible accomplishments in addressing high joblessness and the inability of Republicans and Democrats to work together to solve problems, both top issues among voters early in 2010 midterm election season.

Full article:
http://news.yahoo.com/s/ap/20100210/ap_on_bi_ge/us_what_jobs_11

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