New Hire Tax Cuts: Didn't Work In 1977 and Won't Work Now

Right now, you have Obama and the Democrats running around saying they will create jobs by legislating a $5,000 tax break for businesses that hire new employees.

It's just amazing to me how often the Democrats keep reviving old ideas that don't work.

Back in 1977, Jimmy Carter and his Democratically controlled Congress passed legislation called the New Jobs Tax Credit (NJTC) that looks a lot like Obama's $5,000 tax credit of today. It had little or no effect on the economy then; and, I am quite sure, won't help it now. (Click to See This Very Pertinent Commentary from Last Year: "Tax Cuts for New Hires: Not Yet Ready for Prime Time").

This Obama tax scheme will be another complete waste of money -- just like the Cash for Clunkers Program -- because Obama and the Democrats are totally clueless as to why companies actually hire people. Only companies that were going to hire anyway will truly afford themselves of this credit. To really induce hiring, companies need economic stability and not the current fear that this President and this Congress will heap energy inflation, regulation, health care penalties, and all kinds of new taxes on their backs.