3 Things President Obama Should Do To Help The Job Market
By Kevin Donlin | November 5th, 2008
No matter how you voted on Nov. 4, we should be glad that a black American has been elected president, and we should hope that President-elect Barack Obama will act in the best interests of our citizens at home and friends abroad.
Among other problems, our next president will face an economy in recession, with a September unemployment rate of 6.1 percent that is almost certain to rise.
The cost of the multi-billion-dollar Wall Street “bailout” and increasing numbers of mortgage delinquencies only add to the economic angst.
With that in mind, and as a fellow American who’s helped more than 10,000 readers and clients find jobs since 1996, I respectfully offer 3 actions President Obama should take to help the job market.
The first is below. Actions two and three will follow on Thursday and Friday …
Action 1: First, do no harm
There is no record in human history of a government taxing its way to prosperity.
(I realize I just lost about 53% of readers. Thanks to the rest of you for staying with me.)
Increasing the burden on companies that create jobs by increasing the corporate income tax will do nothing to encourage those companies to hire more workers. Anyone who’s ever run a business or tried to make a payroll knows this.
The corporate income tax is really a tax on people, because all people either work for or buy from companies that pay taxes, which are passed along in the form of higher prices.
According to testimony at The House Budget Committee on October 20, 2008, two ways to do no harm to the economy while stimulating real growth are:
Tax cuts for people: “… making the ‘01 and ‘03 tax reductions permanent and reducing the corporate profits tax … an annual average of 2.1 million more jobs would be created. Indeed, over the 10-year period for which these forecasts apply, 3.4 million more jobs would be created above baseline, current law baseline, in 2018.”
Tax cuts for businesses: “America’s 27.2 million small businesses create 60% - 80% of new jobs annually, but many face some of the highest tax rates. Helping small businesses with tax relief helps the workers they hire.”
More on how high corporate taxes stall economic growth and hurt job creation is here.
First, do no harm.
Spread the Word: