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MONDAY, NOVEMBER 23, 2009
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15

Tax Breaks for New Jobs Gain Bipartisan Support

But some dismiss move as 'corporate welfare'

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(Newser) – Support is building in Washington for the idea of giving companies tax breaks when they hire new workers. President Obama’s economic team has been exploring the possibility for weeks, and lawmakers on both sides of the aisle like the idea of helping unemployed constituents. “There’s a lot of traction for this kind of idea,” says GOP Rep. Eric Cantor. “I’m fairly positive it would be welcomed in a bipartisan fashion.”

Under one proposal, employers would get a credit worth twice the first-year payroll tax for their new hires. The last time something similar was tried, following the '73-'75 recession, employment shot up. “It’s a pity that this wasn’t done a year ago,” says Nobel laureate Edmund Phelps, one of several big-name economists behind the idea. But naysayers say the proposal’s just corporate welfare. “Some bad ideas never go away,” says one Urban Institute researcher.

In this Sept. 15, 2009 photo, people enter a job fair sponsored by the National Urban League in Louisville, Ky.
In this Sept. 15, 2009 photo, people enter a job fair sponsored by the National Urban League in Louisville, Ky.   (AP Photo/Ed Reinke)
A Now Hiring sign is seen in front of a Bennigan's Grill & Tavern restaurant Thursday, July 24, 2008, in Woodbridge, N.J.
A Now Hiring sign is seen in front of a Bennigan's Grill & Tavern restaurant Thursday, July 24, 2008, in Woodbridge, N.J.   (AP Photo/Mel Evans)
A woman looks through job listings at a job center in Menlo Park, Calif.
A woman looks through job listings at a job center in Menlo Park, Calif.   (AP Photo/Paul Sakuma, file)
Clinton Labor Secretary Robert Reich seen gives a commencement speech in this file photo, supports the tax break.
Clinton Labor Secretary Robert Reich seen gives a commencement speech in this file photo, supports the tax break.   (AP Photo/California State University, Fullerton, Kelly Lacefield)
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15 comments
VIEWING:
 
DJM420
Oct 7, 09 7:48 AM CDT
wow, put the words tax and break together, and republicans like it. it doesn't matter what you are taxing or breaking, they like it. Reply
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+2
IN RESPONSE:
Fondue
Oct 7, 09 8:12 AM CDT
That's good LOL. Seriously, this just further proves that Republicans are all for corporate socialism.
Vote up! Vote down!
+1
IN RESPONSE:
polytricks
Oct 7, 09 11:14 AM CDT
I'd say mainstream Republicans are for corporate socialism, because they're not really sure for what they stand. My concern is that there will be an unintended consequence. Though this is a better plan than the bailouts (because it ties the receival of tax benefits to hiring, rather than nothing), is it just adding fuel to the fire?
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0
Timinator2K
Oct 7, 09 8:36 AM CDT
Not to worry, companies who get tax breaks now for new hires will be HYPER-TAXED down the road to punish them for being dumb enough to go along with a socialist administration. Its a golden bear trap (with sharp temporarily-hidden teeth). Reply
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-1
IN RESPONSE:
Unaffiliated
Oct 7, 09 8:40 AM CDT
So the appropriate conservative response to this suggestion would be to not hire new employees? Maybe fire some just for good measure, and to make the rest work harder to earn their $7.25/hr?
Vote up! Vote down!
+3

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