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Tax credits play major part in new Obama plan

IRS tax forms

Steve Chiotakis: Let's get a little more perspective on the president's jobs plan, and tackle all those tax credits that make up more than
half of the proposal, as we mentioned.

Jill Schlesinger is editor-at-large at CBS/MoneyWatch, and she's with us live, as she is every Friday morning from New York. Good morning Jill.

Jill Schlesinger: Good morning.

Chiotakis: Is any of this gonna help? I mean, do tax credits like these create jobs?

Schlesinger: Well let's look at the employee portion of the payroll taxes. The idea behind those kind of cuts is that workers spend the extra money in the economy -- so that's kind of generally good. The problem is that there's really been a fundamental shift since the recession. For the past year, even though Americans got that cut, they used the extra money to pay down debt and beef up savings -- so there's really not any great reason to think they're going to do something different with an extra 20 bucks per pay period next year.

Chiotakis: So we have these incentives, Jill, for the employers to hire. Is that enough for a company to pull the trigger on adding jobs?

Schlesinger: You know, I think business owners only hire when they see an increase in demand for their goods and services. Without that, why would they add new workers, even if it's a slightly cheaper cost? I think this part of the plan is almost like cash for clunkers -- you're basically paying people to buy a car that they would have already purchased. There's actually a recent study that looked at a similar employer tax credit plan from the late 70s, and it found that 70 percent of those tax credits were claimed for hiring workers who would have been hired anyway. So, this could be just throwing a little bit of money at some company that doesn't really need it.

Chiotakis: Jill Schlesinger from CBS/MoneyWatch. Jill, thanks.

Schlesinger: Thank you.

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A HEALTHY ECONOMY IS PRETTY SIMPLE: HAVE JOBS TO MAKE USEFUL STUFF AND HAVE ADEQUATELY PAID WORKERS TO BUY SOME OF THAT STUFF.
COMPANIES ARE NOT HIRING FOR 1 REASON: BECAUSE DEMAND IS WEAK. TOO MANY PEOPLE HAVE NO MONEY TO BUY STUFF.
SIMPLE WAYS TO BRING HEALTH BACK TO OUR ECONOMY:
1 TAX PEOPLE, NOT COMPANIES! COMPANIES ARE THE TRUE JOB CREATORS. THE PROFITS FROM A COMPANY WILL GO TO SHAREHOLDERS. THAT IS THE TIME TO TAX IT!

2 DO NOT TAX US FOR LIVING! TO TAX FOOD, SHELTER, AND MEDICINE IS TANTAMOUNT TO TAXING THE AIR WE BREATHE.

3 REGULATE BANKS ONCE AGAIN. AND ENFORCE LAWS ALREADY ON THE BOOKS. MAKE MORTGAGE CONTRACTS AS SIMLE AS THE NUTRITION LABEL ON OUR FOOD.

4 CHANGE THE SSI TAX. INSTEAD OF A CEILING, INPLEMENT A FLOOR. EXEMPT THE 1ST $15000 OF INCOME. TAX ALL INCOME ABOVE THAT.

5 FIX HEALTHCARE AND DETACH IT FROM EMPLOYERS. IF WE HAVE TO OFFER THEM A TAX SUBSIDY TO OFFER A HEALTHPLAN, WE ONLY DISTORT THE MARKET
CHOICE! GIVE ALL THE OPTION TO BUY INTO MEDICARE OR PRIVATE INSURANCE. IF MORE $ WAS COMING IN, WE WOULD NOT BE THREATENING THE ELDERLY AND THEIR MEDICARE. MOST WOULD CHOOSE MORE INCOME OVER THE COMPANY HEALTH PLAN IF THEY KNEW HOW MUCH IT COSTS. AND MOST WOULD CHOOSE MEDICARE WITH 3% OVERHEAD. LET BIG INSURANCE COMPETE WITH THAT!

6 COMPETITION IS HEALTHY FOR CAPITALISM! STOP A MERGER EVERY ONCE IN A WHILE. HMM COULD HIGH GAS PRICES HAVE ANYTHING TO DO WITH LESS COMPETITION: BP/ARCO, EXXON/MOBIL,
CHEVRON/TEXICO....

7 TREAT ALL TYPES OF INCOME THE SAME, REGARDLESS OF HOW IT’S MADE-BLOOD AND SWEAT, GAMBLED, INVESTED, INHERITED, ETC.
IT’S LIKE WARREN BUFFET SAYS, “WHY SHOULD A BILLIONAIRE INVESTOR HAVE A LOWER TAX RATE THAN A SECRETARY??”

8 FOOD PRICES WILL ONLY GO UP IF WE ARE CARELESS WITH HOW WE USE IT. WHAT ARE WE DOING FEEDING CORN/ETHENOL TO OUR CARS?! AS LONG AS KIDS ARE STARVING IN PARTS OF THE WORLD, HOW IS THIS EVEN LEGAL? THE GOVERNMENT SHOULD BE WORKING TO PREVENT EXPENSIVE FOOD, NOT ENCOURAGE IT! WHY WOULD WE SUBSIDIZE SUCH AN IRRESPONSIBLE AND IMMORAL ACT?

9 HELP THE POOR. AID REALLY IS SUPERIOR/LESS COSTLY THAN INCARCERATION.

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