An article in the Intelligencer Journal / New Era reports that the proposed Sen. Bob Casey sponsored measure “gives small business a 10 percent income tax credit on new payroll for hiring new workers or increasing the hours and wages of existing employees.”
This reminds us of the story, perhaps apocryphal, that the Chinese peasants used to burn down small pig sties to have an excuse for eating pork at an ancient time when it was prohibited.
Business people hire employees when they are needed, not because the government will give them a 10% subsidy. All this means is that more money will be expended where it isn’t needed and won’t do much good.
Casey should take the same money and invest it in infrastructure improvements that will take the unemployed off workers compensation and food stamps, enable them to be gainfully employed, and generate additional jobs through the ‘Multiplier Effect’ resulting from the additional consumer purchasing power.
In short, he should put his shoulder behind the President’s proposed American Jobs Act.
