With renewed interest in job creation, we offer some free advice to the Obama administration and Congress.
We couldn't agree more the country's most pressing need is to create jobs, and it's obvious there are a number of ways to do so. Most of the talk has focused on either increasing government spending to stimulate growth or reforming or reducing taxes to encourage investment. Whichever we choose, we believe the solution must be a fix for the long term.
Offering tax credits for hiring people sounds great, but it won't lead to any actual hiring until and unless the economy improves to a point where hiring makes sense. No one we know will hire people just to get a tax break.
Proposing to increase taxes on the "wealthy," including households with incomes of $250,000 or more, strikes us as counterproductive. Many of those "wealthy" people own Subchapter S corporations, so increasing their taxes takes money directly out of their businesses. That's not helpful to job creation.