Obama Administration Considering Tax Credits for New Hires

On the New York Times Caucus blog, John Harwood revealed that the Obama Administration is considering “a new package of tax cuts and other job creation measures.”

Privately, Mr. Obama’s economic advisers are sifting options for a new package of tax cuts and other job creation measures to be unveiled in next year’s State of the Union address — or earlier if pressure for action becomes irresistible.

On CNBC at about 1:01 ET, John Harwood explained his cryptic comments by saying that among the proposals being considered are “tax credits for new hires.”

Imagine you are a small businessperson thinking about adding an employee. Should you hire now — or wait until next February to see if you can get a tax credit for hiring that person.

If employers become like American car buyers waiting for the next round of industry rebates or government give-aways, then the employment picture will deteriorate further.

It’s not hard to see how to promote employment: lower FICA taxes for everyone — immediately.

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