When President Obama released his eagerly anticipated $45 billion jobs plan last week, many economists were quick to criticize the efficacy of the strategy’s payroll tax cuts.
But many small business owners across the country are praising the plan, saying that these exact incentives would allow them to immediately hire a number of workers they’ve been needing for months, if not years, but formerly had no way of subsidizing.
This news comes as small business is facing a far from booming economic environment, amid ongoing debates about the debt ceiling which have stymied any stimulus from Congress, consumer confidence plunges and many projects drying up in all sectors. Despite a couple of years of growth since the end of the official economic recession, these extenuating circumstances have forced these same businesses to continue laying off employees, offering discounts, and, for many, find ways to restructure their collapsing companies, through bankruptcy or otherwise.
But now, small business owners are becoming more optimistic that the President’s new plan may be just the help they need to begin hiring again.
According to The Huffington Post, “Obama's proposal -- which also calls for infrastructure spending, state aid, unemployment insurance and neighborhood rehabilitation -- would cut in half the taxes that employers pay on their first $5 million in payroll and eliminate those taxes for businesses who hired new workers or gave raises to current employees.
‘The economy has been rough, but these tax cuts would have a direct and immediate impact on me," Ward said. He figures the cuts will save him a minimum of around $15,000 over the course of the year, half the entry-level salary for a graphic designer on his staff. "If it becomes less expensive to make hires, there are people we want to bring on, and now we will -- as opposed to just putting it off and saying, 'Well, maybe in six months.’
Estimates for how many jobs the plan will create range from 1 to nearly 2 million. However, some economists argue that the incentive provided by the payroll tax cuts won't be enough to sway employers. Still, many small business owners say that with unemployment above 9 percent, consumer confidence continuing to dip and gross domestic product stagnant at 1 percent growth, the cuts are a strong first step.
‘Its not a magic bullet to solve all problems,’ said John Arensmeyer, the CEO of Small Business Majority, a research and advocacy group. ‘At the end of the day you're not going to hire someone if you don't need them. But if there's more money in the economy and there's more demand, you're going to hire more people.’”
This renewed optimism is tempered by some in the small business community who worry that the plan doesn't go far enough in addressing some of the long-term problems plaguing American businesses. Among these concerns is that this one year’s worth of tax cuts, are too limited “to pull the economy out of its current slump.”
So what can you do if your small business slump is unchanged by payroll tax cuts?
If your specific industry has been affected by the economic downturn, a personal bankruptcy can shield you and your family from personal liability for business debt. Diminishing your personal liability will help you preserve your family's financial viability so you can focus on your business.
So, are you an active businessperson who is considering the benefits of a bankruptcy filing? Or are you an average American reading about the benefits of bankruptcy and want to learn more about how these types of benefits can actually benefit you?
First and foremost, when you are seeking the broad protections of bankruptcy, it’s best to consult with a qualified attorney before filing. A qualified bankruptcy attorney is important during the bankruptcy process to help you navigate any uncertain waters and work in your best interests throughout the duration of the case, regardless of your status. If you live or work in North Carolina, the bankruptcy attorneys at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to +1-919-646-2654, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.