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"If the government robs Peter to pay Paul, he can count on the continued support of Paul.

Saturday, February 6, 2010

Tax-Credit-for-Hire: Another Failed Stimulus Policy in the Pipeline

"Businesses are not making the decision to not hire—or lay off current workers—because they simply want to keep their workforce smaller. Instead, as a result of depressed demand during the recession, companies are continuing to face lower sales and overall revenues. Most companies—particularly small- and medium-sized companies—are making these employment decisions to shore up on costs to survive during the recession. As an example, if a company determines that a worker is too costly to employ at $25,000, that worker will remain costly at $20,000, especially when there is no new work for the company. This is holds for a business of any size."

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