Thursday, March 12, 2009

The "Stimulus plan" pertaining to small business

Yeah I know, this whole plan has been talked to death. This part though has not recieved much attention, if a small business hires a worker during the '09 fiscal year then it gets a tax credit of about $3000-$4000 dollars as an incentive. Got it, if you hire a person to work for what about $20,000 a year then the government will help you with 15% of the cost......That helps if you were already going to hire another employee, but for most small businesses this is a horrible bait and switch. The government assisting with small business in this manner is purely cosmetic and politically motivated. Would you hire another person thus increasing your average variable cost when your entire market is facing recession and a slump in sales? If yes then try to get a government or labor union job or you will be sorely disappointed with reality. If no then thank you for paying attention in class and seeing that this is like offering someone who is broke .50 cents to pay for a $2.00 bridge toll they are in line for during rush hour, less then useless (don't think so, I can think of a few very long bridges you could experiment this with. It will suck). So wrapping up this thought, the concept of the government covering a minimal amount of a unwise liability to your company is no form of help at all and is a slap in the face to anyone owning thier own company.

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