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New Tax Credit??

Obama says that it is time to put Americans back to work…. I agree, but what is the best way to do that? For all of us in the business world is how? Obama says that the way to do that is to give a tax credit of $5,000 to small business owners that hire new employees on 2010. That is a novel idea but a $5,000 credit will not pay the new salary, benefits and taxes associated with that new hire. The fact of the matter is that the public’s credit is tapped. A lot of the growth that we have seen in the past years has come from the use of credit cards and now with consumers being tapped out who is going to spend money to increase the bottom line of our businesses. The simple fact is that we staff based on need and in the small business world we a lot of times are forced to be reactive versus proactive. This also makes me think of a couple other questions….

1) How large will your small business have to be to “earn” this tax credit?

2) How will we as taxpayers pay for this tax credit?

The only answer that makes sense to me in solving this economic issue is to simply put the money back in the hands of the taxpayer and let them decide how to spend it; then capitalism will do its job! As people spend more money then we will staff according to the need!

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