Because it is utterly foolish.
Here’s the short summary from the New York Times:
Senators Max Baucus, Democrat of Montana and chairman of the Finance Committee, and Senator Charles E. Grassley of Iowa, the panel’s senior Republican, released a draft $85 billion plan that would give employers a payroll tax exemption for hiring those who have been unemployed for at least 60 days. The bill would also provide a $1,000 income tax credit for new workers retained for 52 weeks. (A draft of the bill is available here.)
This is risible, and demonstrates an almost total disconnect with the mood in the country which wants the incompetent federal government to stop doing anything and get out of the way of the free market and the private sector instead of nudging here and pulling there using money it doesn’t have to create jobs we will never see.
I employ people to assist in my media business. Along with my law partners, we employ associates and support staff at my law firm. I have been in the business of hiring people for more than 20 years. Unlike the senators, I know at least a little about when and why new workers are hired in the private sector, and it isn’t in response to $1000 tax credits.
There is no way these “incentives” will create many real jobs, though they will lower the cost of workers who would be hired anyway by expanding businesses.
If the Congress would simply order water deliveries in California’s Central Valley or rewrite the absurd Consumer Protection Safety Improvement Act of 2008 or any of a dozen other common sense measures to increase economic activity, the jobs outlook would be much better off than with this election year posturing.
I hope Republicans have the courage to quickly call this an absurd bit of political theater, just as the health care summit is, and rely upon the common sense of the American voter to see through the rhetoric of “obstructionism” and MSM Obama-swooning over the word “bipartisan.”
We don’t have $95 billion to waste on the re-election program of incumbents.