I've been reviewing the stimulus plan being considered by Congress and even though I really hate to say it, I agree with the Republicans, I don't see a lot here to create jobs. For example, take a look at this comparison of House and Senate bills from Reuters. Where is the job creating portion of the plan? I see money there for rebuilding infrastructure, and that's great, that will definitely put some people to work. But what about those people not already skilled in construction and manual labor, where are their jobs? And as for the rest of the proposed spending, it's hard to see where the jobs will be created. The spending proposals are commendable and things that should receive money at some point, but we need a balance between funding for economic stimulus and funding that will generate jobs. For example, take a look at this report from The AP which notes increases in funding for student aid and university building projects. Both are very worthwhile efforts to support, but aside from keeping students in school and out of the labor force (no need to add to the competition for scare jobs) and the few localized construction jobs, I fail to see where the jobs are being created on a large scale by this specific funding. We need job creation on a national scale, not just in college towns.
It has been said that the vast majority of Americans are employed by small businesses, so I'd like to propose a simple plan to stimulate job creation by small businesses. I suggest in addition to the stimulus spending already proposed we have a one year income tax holiday for new businesses created in 2009 that employ fewer than ten people. And before you say that the federal government and local governments need that income tax revenue, let me point out that this tax break would be for NEW businesses, so the government is not getting any money from them now...you can't lose what you don't have. And when those businesses survive and establish themselves, they will then be paying taxes and supporting their communities. Moreover, their employees will have a steady paycheck and the consumer confidence to go out into the marketplace and start buying again, which really needs to happen. Let's actively promote the creation of new businesses in every town and city in this country by giving them a one year tax holiday. Whose with me?
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