In his speech to Congress last night, Obama said he proposes a $5,000 tax credit as a incentive for businesses to hire new workers during the barred economic times. However, these companies who want the new tax credit cannot simply fire one employee and hire a new employee, but that is not the only tax incentive for small business. Obama wants to give small businesses an additional reimbursement for companies that raise its employee's paycheck. The business would receive a tax credit for higher Social Securities payroll taxes.
This tax credits seemed to please the Republicans, and they may even support Obama on this one. Obama took the right steps to encourage small businesses to hire an employees because these small companies are the "backbone of America." According to the White House, these tax credits would cost $33 billion dollars, but where are we acquire the money. Obama already spent a $800 billion dollar stimulus, and this hardly made any jobs.
Hopefully, Obama knows where he is going with this one.
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