Saturday, January 30, 2010

Job-Making Tax Credit All Backwards

As described here, the mere declaration in the State of the Union of a tax credit to small businesses that hire workers won't cause such small businesses to hire workers. Because businesses make hires based on sales, cash flow, and demand for products/services that requires additional personnel, the tax credit won't so much give an incentive to hire as it provides a windfall to businesses whose success was going to lead to hires without the tax credit.

Who benefits? Not the public. Why are we paying for this?

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