So far I have been asked by several people today what I think about the proposed tax incentives for businesses that hire and promote employees. I can put it pretty succinctly with, “First things first.”
I would love to hire more people. I enjoy the process of bringing on new folks. Even more than hiring, I really enjoy the process of helping them develop their strengths and find a career path. So what’s the problem? How can I hire more people, when I am sweating my payroll every two weeks?
Businesses hire and promote when they are GROWING. At best right now most businesses are sustaining. We are OK, we are getting by, but most of us will need outside capital in order to grow.
First – send that $30 billion to community banks while strongly encouraging them to lend to local small businesses.
Second – the small business owner applies for and receives a line of credit or a loan for expansion
Third – the small business hires new people to help them grow the business, and promotes current employees to help manage the new people
Fourth – a year later when the small business files their taxes, they get a little “gift” from the IRS and are able to – wait for it – put that money back into their business and hire more people!
Wow, magical isn’t it? Tax incentives will work – but we have to shore-up small business lending FIRST.
