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

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.

Click here to read the entire article.

Source: Business Week