What's Holding Back The Hiring? Start With Obama's 10 Job Killers

[Confederate Kahanist]

http://www.investors.com/NewsAndAnalysis/Article.aspx?id=543080&p=4

By JIM POWELL Posted 08/09/2010 06:43 PM ET

Perhaps hardest hit will be small business owners filing tax returns for subchapter S corporations, partnerships and proprietorships. By reducing the profitability of future investments, the decision to let the Bush tax cuts expire discourages investors from investing and employers from hiring.

• Obama's runaway spending.

Investors know that ultimately higher spending must be paid for with higher taxes that will reduce the after-tax return on investment. Consequently, rather than making capital available now, many investors remain on the sidelines, and many businesses are sitting on cash, waiting to see how high the taxes are going to be. The prospect of higher taxes is a major factor depressing private-sector job creation.

By increasing the cost of hiring people, increasing the cost of doing business, reducing after-tax returns from investment, and subsidizing unemployment, Obama is repeating FDR's misguided policies that prolonged high unemployment during the Great Depression.

• Powell, a senior fellow at the Cato Institute, is the author of "FDR's Folly," "Wilson's War," "Bully Boy, " "Greatest Emancipations" and "The Triumph of Liberty."