The President wants to repair schools, and give grants to states to prevent public sector layoffs. But:
- Public sector jobs require constant government spending, which is detrimental to job creation
- Public Sector spending repairing schools will take months and years to make any difference
- Obviously, all the President is looking for is to be able to say “Republicans hurt children” if they vote against his boondoggle.
The President’s plan will be paid for by eliminating the tax deduction on Mortgages, increase in taxes on “the wealthy” and eliminating the deductibility of charitable contributions. Think of the effect!
- Eliminating Tax deductibility of mortgages will be another mortal blow to the housing sector. And additional taxes on people making over $200,000 a year, who are responsible for 1/3 of homebuyers, will add to the housing misery! It will destroy thousands of jobs in the Real Estate Industry: brokers, appraisers, construction workers, inspectors, lenders, etc.
- Additional taxes on the “wealthy” will cripple further small business, who are responsible for 90% of the job creation.
- Elimination of the Charitable Deduction will wipe out the thousands of charitable foundations and work done by the churches. Cynically, one can see the President’s motives:to drive all welfare to the State! Grow the welfare bureaucracy beyond his wildest dreams! But understand this: a State bureaucracy consumes 70% of the funds earmarked for “the poor”, whereas, charities like CNEWA only consume 3%! It’s easy to see how much worse off the needy will be under such a plan!
This is in addition to the recent tripling of Federal regulations on business in the name of “protecting the consumer”. Bank of America announced the layoff of 30,000 employees owing to burdensome regulations!
Ahhh, “progressive job creation” at its finest!