A Tax Cut for Hiring Is No Jobs Stimulus

During the question and answer period with Commerce Secretary Locke this morning, NAM President John Engler today echoed other manufacturers’ support for infrastructure spending and said the “jobs tax credit” would not help the economy. Engler:

There’s been some idea of a tax credit for hiring. There’s almost no support for that, there’s no belief that it will make any difference at all. If it were a $5,000 a person credit…in other words, if you don’t need the person you’re not going to hire them because of the tax credit. There are lots of different thoughts, but I think the general consensus as I go around the country is it simply would be pointless….

David Wessel’s “Capital” column in today’s Wall Street Journal, “Taking Sides Over Need for Jobs Bill,” addresses the politics and economics of a jobs-creation credit.

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