An Obama Tax Cut For Small Businesses?

Online, December 14, 2010 (Newswire.com) - Obama has made no secret of his focus on small businesses, calling them the "true engine" of job creation in this country. Small businesses have been hit hard by the 2007-10 recession, laying off more workers for a longer period of time than in any recession in memory.

The jobs incentive program has yet to yield measurable results that can be tied directly to the program, however for the first week of June, the Labor Department reported that the number of U.S. workers filing new claims for unemployment benefits dropped slightly, while continuing claims fell to the lowest level in 18 months. Although this represents a very small decrease in the overall rate of unemployment, it was in line with many economic analysts estimates for what should be happening with a slow recovery. The Labor Department report indicated that while a total of 431,000 jobs were created during the month of May, many of those were due to temporary hiring for the 2010 Census and only 41,000, or 9.5 percent came from the private sector. The boost in hiring reduced the overall unemployment rate to 9.7%. Not all areas of the country experienced a drop in claims - Florida remains among the states with an increase in unemployment claims - mainly due to layoffs in the construction, trade, service, manufacturing and agricultural sectors.

"It is time to put America back to work," the President said, as he toured a factory in Baltimore. By some analyst's estimates, more than one million small businesses are expected to add new positions to take advantage of the new program. Some analysts have predicted an increase in startup loan, small business loan and personal loan applications as a collateral result of the new tax credits. Obama remained optimistic that, despite the damage done to the labor market during the recession, the economy is now poised to start adding the jobs people need.