Our economy depends on It. Unemployment is still 9.8% and rising with no end near. Does anyone really think the unemployment rate is going to decline without aggressive relief to business?
This 11th hour tax vote is inexcusable. Politicians have known about the pending expiration of these tax cuts for many years. They have recently abandoned their responsibilities to perform their "more important job" of political campaigning. We didn't elect members of Congress to campaign; we elected them to support our country.
Washington needs to listen to the American public. According to a December poll by Gallup.com, 66 percent of Americans support both extending the tax cuts for two years and extending unemployment benefits for another year.
President Obama needs to create a fresh, new version of the knights of the round table with the nobility of the business world. Of course, he needs to bring on the critical thinkers who understand a sense of urgency that many congressional leaders fail to realize. Bill Clinton helps with the political implications, but we need the business experts. Bring them together as a new think tank to impart their business knowledge on the decision makers in Washington. It should be a requirement of our governmental leaders to have emphatic, grounded experience in American business to make decisions on behalf of their constituents.
It makes me wonder what set of competencies our government officials have to fix our serious economic problems, particularly job loss. I know one thing, they either don't have what it takes or at least they aren't using business sense. They are adding "incentives" to this critical initiative, really? This will negatively impact the lives of not only business, but the American public.
Senate Majority Leader Harry Reid has proposed a new tax plan that includes pork of sorts that includes relief for the rum industry, the film industry, and NASCAR. It is downright insulting to throw these types of enticements into this critical mix. This is not like going to the union bargaining table to reach an agreement by trading last minute proposals. This may be the most important vote of our contemporary time. If we don't get the problem with joblessness under control, we will likely dive into a new economic abyss that will last for decades.
Even the extension of the unemployment benefits, while is arguably critical, doesn't have conditions in order for them to receive additional money. We need controls such as enhanced reporting of job searches and public service to work for the additional pay. The unemployed cannot sit and wait for their career knight in shining armor to knock on their doors. This sounds remarkably familiar; it is similar to the TARP money handed out without conditions and control.
You can't, can't ignore the obvious fact that our government hasn't been kind, nor attentive to the needs of the job creators. It is mid December and we still don't know what we can count on for our 2011 budgets. October came and went and Congress went on a recess without consideration of the extension of the Bush Tax Cuts. The mid-term election was more important than the jobs they were elected to do. Think about it -- October is a typical month for creating the final budget for the following year. And we expected to see job growth in the Fall after the "Summer of opportunity"? We did not give the tools to business to open up their budgets and fiscal hearts to potential employees. We did the opposite; we froze them. There is no surprise that businesses are in a frozen mode. They are trying to do more with less. As time goes by, they become more comfortable with their staffing levels and less likely to take risks or expand. Likewise, employees are doing more work with less opportunities, and in many cases less money.
Businesses are making money, you may say. Their balance sheets are looking up. This is true, but American business still does not know their tax liability, their obligations for health care, or energy for 2011, not to mention their taxes on their rum consumption. There is no surprise that they aren't hiring. They want to wait and see what tomorrow will bring. But think about it from the personal level of how you manage your household budget. If you are suddenly solvent, are you going to pack away money for the next freeze or are you going to spend it? The likely answer is the former. Like it or not, big business and small business alike hold the cards, and they will conserve until they can see that they can manage their taxes, borrowing power, and perhaps then their spending and risk taking.
We don't exist for political futures. I, for one, am sick of the political games. How about that filibuster that wastes valuable time and effort? Perhaps eating crow will be part of this voting process. We need the extension of the tax cuts now. The alternative is to wait until January and see if new sparks will fly.
Presidents always have professional advisors and in this case, discussions about job creation are a logical and important step to help turn around this serious problem. Further, businesses are not likely to hire new employees without a clear picture of their tax obligations for the coming year. Hopefully whichever way the vote goes, we will all be able to plan for next year soon.
Think of the "free market." “Market” being the key word. When people don't have money they can't go to the market. When they can't go to the market, the market dies.
Share the wealth with the people who help you make it. Then they can go to the market. The "free market," which isn't “free.”
Companies are hoarding their profits and aren't hiring because taxes are so low, they don't need to make capital investments or hire new people. It is only when taxes go up that they will start to spend, in order to avoid having to pay taxes on their profits. It's as simple as that.
It is the same with businesses. Businesses think we can't live without them, who told them that?
They could be right at this time, but they need to remember that time changes everything and they won't always be head honchos. Remember when some used to say, "You meet the same people going down the ladder as you do going up, so be careful how you treat them."
With an increasing demand for products (services) businesses produce more, that often involves additional employees or purchase of capital equipment.
If we fail to create demand, businesses will not produce more products or offer more services. Giving a businesses tax relief, allows for more profit, assuming they do not pass the benefit to the consumer (lower price). If demand stays the same, they will use their profit to create bonuses and maybe buy capital equipment to increase productivity (reducing labor needs).
We need to address the fundamental issues of our stagnant consumer economy. We need to create demand. Businesses purchased equipment does help create some demand but not at the scale necessary to revive our economy, which is about 70% consumer driven.
Consumers are reluctant to purchase because their jobs are at risk, their income has not risen in years, and their net worth (homes, investments) have been devalued. The unemployed are a growing burden on communities, cities, and states. Loss of tax revenue, less demand for products, charities and community support services become unable to meet the relief requests.
Stimulate demand and jobs will come back.
Odd that a Democrat would cut Social Security taxes, but not put a lid on health costs. It is past ridiculous.
I am baffled by the Congress and President and their choices on how to fix the economy. I suppose, I lack the 'big business' dollars to tell me why it makes sense!
Demand moves the economy forward. Money does nothing for the economy unless it is used to purchase goods and services. Buying, selling, using, goods and services that serve the consumer will bring back jobs. Giving money to the wealthy does not increase consumer demand. THey are already buying. More money will go into investments.
I am not sure why the Republicans do not understand that stimulus is about spending, gifts are about investing. Tax relief for the rich is a gift. Tax relief for the poor/middle class is a stimulus.
Giving SS folks a $250 payment because they received no COLA is a stimulus not a gift. Keeping the estate tax low and capital gains taxes low is a gift not a stimulus. Unemployment benefits are a stimulus and a life line.
It may be too late in America to change the course and direction of Government. The wealthy now seem to control both parties, neither of which is capable of understanding the 'plight' of their constituents (unless they are rich ones).
Yes, there are some who do understand compassion and have the ability to appreciate the difference between gift and stimulus. However, the new Congress has so many that are confused about the difference, that I assume, it will be business as usual, except a lot more NO and a lot more dismantling important and useful services for the poor and middle class because to Republicans it looks like a gift.
I don't have an MBA nor diplomas in finance or (God forbid) economy. I used to fix people, not balance sheets.
But I've been on this planet long enough to know this: business people care MUCH more about good sale prospects in expanding markets that can offer healthy return of investment and net margins than a + or - 10% variation in the tax rate.
I challenge you to prove me wrong on that one.
As for the "nobility" it shall be restored when businesspeople stop to so narrowly define their mission as being strictly and exclusively "enhancing shareholder value", which, by definition, exclude any preoccupation with social matters and externalities.
I know it is hard to believe, but businesses do not operate in a vacuum; there is an ecosystem (social and physical) supporting them, yet the amount of care toward this ecosystem is, ahem, shall we say, very subordinated to short term interests. (wow! How's that for polite formulation?)
The "nobility" of the business world are already our masters. Mission accomplished.
This article lies and worse about the situation at hand.
Stop spending on what?
Maybe you should listen to Sen. Sanders speech yesterday, any part of the 8.5 hours of it, to fully comprehend the economic inequality that has been going on in this nation for the last three decades.