Will Obama’s Tax-Credit Plan Fail to Spur Small-Business Hiring?

John Young, president of Cleveland-based Speed Exterminating, is among owners who say they won't hire someone just for the opportunity for a tax credit.

February 24, 2010

An article in Business Week questions whether or not President Barack Obama’s tax-credit plan will spur small-business hiring.

One of the small business owners interviewed was John Young, president of Cleveland-based Speed Exterminating. The article noted that instead of interviewing applicants to replace a retired worker, Young is poring over route sheets to see where he can squeeze more work from current employees. With sales down 10 percent and the company coming off a 2009 loss, the prospect of a tax credit won’t motivate him to take on more hands.

“I’m not going to just hire somebody because I have the opportunity for a tax credit,” said Young, whose great- grandfather started the company in 1908. “I need to make sure the business is sound.”

The credits Obama has backed, and a similar incentive in a jobs bill the U.S. Senate may vote on today, aren’t enough to prompt an increase in payrolls, some small business owners and organizations say.

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Source: Business Week

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