If it passes, Obama’s so-called jobs plan has no chance of working. He seems to think businesses and consumers are going to make long term hiring and spending commitments based on short term incentives.
If you run a business and reach the very reasonable conclusion that the tax and regulatory climate is going to be ugly for the foreseeable future, do you really think a small tax break is going to entice you to commit to a new employee? If you are a consumer and you think your job is unsteady or your income growth over the next few years is limited or that, even if your income grows, you are going to be nailed on taxes, are you likely to start spending?
We don’t need a “jobs” program, we need a “get government out of the way” program. When business and consumers are confident that government won’t punish success by taxation or prevent success to begin with by regulation, the economy will prosper.