Along with investing in green technology and U.S. infrastructure, Obama announced last week his plan to help “Main Street” by giving tax breaks to small business for hiring employees.
While experts are saying the recession is technically over, job creation remains an important factor to getting the economy back on track. There are two options for implementing Obama’s plan: A simple hiring tax credit could incentivize tanning salons and other small-business owners to create new jobs by getting a $3,000 credit; a more controversial tax reward or tax holiday would waive the 12.4 percent tax placed on a worker’s first $106,800 of wages. Many worry the former isn’t enough incentive for businesses that still struggle with lowered sales, and some fear the latter plan has too much potential for fraud.
Sources:
CNNMoney: Obama Touts Tax Break for Small Biz Hiring
The Wall Street Journal: Obama Pushes New job Stimulus
