Help us end the fiscal year strong. Donate by June 30. Give Now

Obama’s plan to help small biz hiring

Mitchell Hartman Jan 29, 2010
HTML EMBED:
COPY

Obama’s plan to help small biz hiring

Mitchell Hartman Jan 29, 2010
HTML EMBED:
COPY

TEXT OF STORY

Bill Radke: So as we said, the economy grows, but jobs still lag. The president hopes to create some jobs with an idea he’s pitching today to Congressional Republicans. Marketplace’s Mitchell Hartman has that.


Mitchell Hartman: The president wants tax credits of $5,000 for each new employee a small business brings on this year. And a payroll tax holiday for adding to employees’ hours or giving them a raise. Small businesses are responsible for roughly 2 in 3 new jobs, so getting this employment engine running again is a key priority.

But management consultant and professor Peter Cohan is skeptical a hiring tax credit will make much difference. He says businesses have perfected the art of getting by with fewer people.

PETER COHAN: You look at the productivity statistics and they are tremendous. Because businesses are able to squeeze so much out of a very small number of employees. And they are going to be very reluctant to hire new people unless they absolutely feel they are going to miss out on business if they don’t hire them. So I don’t think this tax credit is going to be enough to push them over the edge.

In addition to the hiring tax credit, the president is pushing small-business tax breaks on capital gains and new business investment.

I’m Mitchell Hartman for Marketplace.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.