Friday, February 12, 2010

The senate no jobs bill

Went and read the no jobs bill being proposed. Nothing like putting the fox in charge of guarding the chicken coop. The bill does little more than give business and the rich more tax breaks. Gee I thought we voted the republicans out the last election and yet here they are riding rough shot over legislation. Seems once again the spineless balless Dems are caving again. Here's the short version of what the bill does and make note that the money for business is borrowed while money for jobs was already in the general fund. So like some Abbott and Costello bit we get the money that was already there for our benefit while business borrows from us a couple of times. Like saying here's your $10 now loan me $30 and we'll call it even.

The bill gives business a tax break of up to 6.5% of the FICA tax (up to $125K or earnings). In addition they get $1000 for each worker they hire who stays 52 weeks. Add to that they get to write off up to $250,000 for equipment they buy this year without having to depreciate it over several years which is standard.
The problem As we know three quarters of the American economy is based on consumer spending therefore there's no motivating factor for business to spend money or hire anyone if there's no demand for products. As Billy might say we'd need more empire builders out there spending. But if people aren't working they aren't going to spend and those that are are afraid they'll be the next ones to hit the unemployment line. Business doesn't expand or even try to expand unless they know for sure they'll have a good cash flow and even then it's usually after the fact. As in oh my god we've got too many customers we'll need to hire more people.
That was the $30 part of the joke now for the $10 part. The jobs they say they'll be creating are part of the Highway Trust Fund. The fund ran out of money at the end of the year. But stop to consider that this is money that comes from gas taxes and was already in the general fund and was scheduled to be put in the fund anyway. Sooo. nothing like giving you something you already had and making it look like a gift.
Sorry guys I'm not that stupid and I don't buy it.

Anyhoo until later keep your drums upright. And remember when somebody tells you they have a "free" gift for you it's usually not.

Update Update: I forgot in my hasty reading of the bill (yes I'm one of those geeks that actually reads the whole thing) our wonderfully honest senators decided to go after all that cash corporations have been storing in offshore accounts hiding it from the taxman. So what are they going to do with all that loot? Create jobs? Guess again. They're going to give most of it back to the companies in the form of tax breaks and hiring incentives. Nothing like robbing a bank and when you get caught you get to keep the money eh?


Randal Graves said...

Since no one is spending, might as well give all the money to the job creators, giant corporations. Duh.

Four Dinners said...

It's called 'politics'.

Absolute power corrupts absolutely.

Democracy is corrupt - having said that it's still better than an Islamic state or some'at.

A bit of Anarchy wouldn't hurt eh?

Demeur said...

Great Dinners I get to say "fuck you" republicans while nearly starving to death with no health care.

Grave you swine! Those CEOs just need one more foreclosed mansion to complete their set right?

an average patriot said...

I was gathering information on this to do a story but they had me so confused I said the heck with it. If you can't dazzle them with brilliance baffle them with bullshit. I am baffled!

S.W. anderson said...

The powers that be would tell you this jobs bill will make a difference because it directs money to the small businesses that create most jobs. As if those small businesses are going to be any more interested in hiring more workers in the face of anemic demand, as you rightly point out. But that's what they would tell you.

What they would not tell you is that the great minds that set the parameters for what constitutes big business and small business define the latter as those up to billion-dollar size.

I saw a clip of Obama the other night rejecting out of hand the notion remedies of the 1930s would be useful and work in the 21st century.

It seems beyond Obama's grasp that those remedies could be updated for things that need doing now, like the government hiring enough people to inspect a lot more than 5 percent of our increasing quantities of imported foods, and hiring more people to really patrol our borders, so the next Mohammed Atta doesn't amble into our country with a band terrorists using the same techniques and trails that let in huge numbers of Mexicans seeking jobs — or did when there were jobs to be had.

The government should actually hire people to do stuff like that? What would the Democratic Leadership Council say? Why, that body dedicated to making the Democratic Party as indistinguishable from the Republican Party as possible would be scandalized!

MadMike said...

Hats off to you Demeur. I tried to read this bill, and couldn't get past about the third page. I have become so distrustful of Washington that I pretty much everything with a jaundiced eye.