United Liberty

Just after a budget deficit of $1.4 billion and starting off the new fiscal year $292 billion in the red, President Barack Obama is planning to spend more money with the false hope of pulling us out of the recession:

President Barack Obama outlined new multibillion-dollar stimulus and jobs proposals Tuesday, saying the nation must continue to “spend our way out of this recession” until more Americans are back at work.

Without giving a price tag, Obama proposed a package of new spending for highway, bridge and other infrastructure projects, deeper tax breaks for small businesses and tax incentives to encourage people to make their homes more energy efficient.
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He called for more government spending on infrastructure projects such as roads, bridges and water projects and for new tax breaks for consumers who invest in energy-efficient retrofits in their homes. This could be what some administration officials have called a “Cash for Caulkers” program modeled on the now-expired Cash for Clunkers program of tax rebates for people who turned in old cars for more fuel-efficient models.

I was talking to a small business owner last night about. He said tax breaks for small business owners are a necessity. I tend to agree, however, any tax cuts for business need to be broad, not just directed at small business.

Giving tax breaks to hire are probably not a good idea especially while Congress is placing more burdens on employers, such as the mandates in ObamaCare, which would require small businesses to pay for a government approved health care plan for their employees or face a fine (the CBO estimates that this will cost 10 million people their health insurance). You also have the ever present threat that Congress will try to raise the minimum wage, which will cause employers to cut jobs.

Real economic stimulus would come from cutting the corporate income tax rate (we have the second highest in the world), something not likely to be on the table right now.