On July 11, 2012, VeraCityStew.com posts that on Tuesday, Democrats in the Senate introduced a new bill, the Small Business Jobs And Tax Relief Act, which could generate almost a million jobs nationwide, with over 630 thousand jobs for small businesses alone, through tax credits for those small businesses designed to help them expand their payrolls or increase salaries for existing employees, and in a report from Regional Economic Models, Inc. (REMI), a private economic forecasting firm, they estimate the bill would add $87 billion to the GDP and increase personal incomes by $73 billion. The bill is estimated to cost $28 billion.
The bill would give small businesses a 10 percent tax break for hiring new employees or raising the wages of their current employees, and caps the benefit at $500,000, which would specifically target small business employers. It also extends the 100% depreciation deduction, which allows business owners to write off large purchases, such as equipment, in their entirety for the tax year in which they were purchased, rather than having to depreciate those purchases over several years. So, say Suzi Q goes out and buys $50,000 worth of kitchen equipment for her café, instead of having to write that off over a depreciation period of ten years, she can write off the entire $50,000 for credit on her taxes for 2012.
Once again the focus is on using taxpayer money, either through taxation or debt, to prop up the economy without broadening private, individual ownership in future economic growth. This measure continues to put the political focus on job creation and redistribution of wealth rather than on full production and broader capital ownership accumulation. This is the source of the distributional bottleneck that makes the private property, market economy ever more dysfunctional. It is another redistribution measure that does not address the core problem: the opportunity to produce needs to be adjusted, not the redistribution of income after it is produced.
See my post “There Will Never Be Enough Jobs In America Again” (http://foreconomicjustice.org/3558/there-will-never-be-enough-jobs-in-america-again/)
For continued reading please see my article “Democratic Capitalism And Binary Economics: Solutions For A Troubled Nation and Economy” at http://foreconomicjustice.com/11/economic-justice/ or follow me on Facebook at http://www.facebook.com/pages/For-Economic-Justice/347893098576250 and http://www.facebook.com/editorgary
http://veracitystew.com/2012/07/10/democrats-propose-new-jobs-bill-and-its-a-good-one/
