As North Carolina continues to struggle with one of the nation’s worst unemployment rates, elected leaders are pushing job-creation gimmicks and ignoring policy changes that would be more likely to produce jobs.
This was evident this morning in the House Finance Committee as they met to discuss HB 1721. The H.E.L.P. bill, as it goes by, claims to ?help? small businesses (25 employees or less) by giving them a $1,000 tax credit when they hire a new employee.
The catch? You have to keep the job that generates the credit for three years. So the tax credit works out to $333 per year based on your faith in the economy to be able to sustain the same person on staff for three full years.
I sat in on the committee this morning and reported back via tweet Here are my notes on the discussion:
Rep. Stam argued the bill will hurt our economy more than help.
Rep. Jones said there bill should include money for minority businesses although Rep. Ross was quick to answer, that most small businesses are owned by minorities and women so they will benefit more than others.
Rep. Blust proposed an amendment to cap income tax rate on individual tax returns as 5 percent. Costs estimated at $125million. The sponsor of the bill, Rep. Holliman argued that was too expensive. Rep. Blust responded by equating the bill to a band-aid on a gushing wound. We need to do something to really help. We would lose revenue because of the proposed tax break but it would stir the economy. The Blust amendment failed along party lines. 13 no; 11 yes.
Rep. McGhee asks how you would keep up with who qualifies for the tax credit and Rep. Holliman said it’s not about employees but jobs.
Rep. Stam says no business would hire based possibility of getting $333, Rep. Starnes asks if the tax credits that the Lee Bill has are better; Staff said it could be.
HB 1721 passed unanimously. Goes to House Appropriations next
