10:30 AM EDT, July 16, 2012
Sure is encouraging to hear Senate Democrats supporting reducing taxes for small businesses by $29 billion until you realize they want to cut taxes for only those businesses that hire new workers, or give their current workers raises, or invest in new equipment this year.
They believe this will encourage businesses — especially small ones—to hire again. Not likely.
From the fourth quarter of 2007, when the recession officially began, to the end of 2009 (official end of the recession), real U.S. business investment plunged 22 percent, an unprecedented drop.
This economic tsunami washed away millions of jobs, created massive uncertainty and helped push the jobless rate above 8 percent where it has remained for 41 months.
This is why we now suffer the worst jobs recession since the Great Depression, three years after the recession officially ended.
Targeted tax breaks won't get the job done. These are half-measures that don't address the real problem, which is that real business investment remains almost $100 billion below where it was nearly five years ago.
Stop the meddling. Stop the micromanaging. Rather than just a select few tax cuts that sound good in an election year, America needs deep, across-the-board tax cuts for all businesses.
Benedict Frederick, Jr., Pasadena
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