President Obama proposed a job creation tax credit in his budget, but it is bad policy | Business | TIME.com

A tax credit? For small businesses? To create jobs? And raise wages? Wow! What a great idea! What’s not to like?

Quite a bit, in fact. In his fiscal 2013 budget proposal, President Obama has suggested a temporary 10% tax credit designed to spur job creation and wage growth among small businesses. It’s a fine idea with a long pedigree — just the ticket if you’re in the market for small-bore economic policies that sound cool but don’t do much.

In recent years, there’s been a lot of talk, and even a little action, on the notion of job creating tax incentives. The Hiring Incentives to Restore Employment Act of 2010 featured a pair of credits, including one to encourage hiring unemployed workers. And Congress agreed last fall to create a new credit for the hiring of unemployed veterans.

This sort of legislation is obviously well intentioned. High and persistent unemployment is a blight on the economy. Left unchecked, it can even be a threat to democracy — research suggests that long-term joblessness is associated with support for authoritarian government…

via President Obama proposed a job creation tax credit in his budget, but it is bad policy | Business | TIME.com.