http://www.newsmax.com/StreetTalk/Taxes-small-business-hiring/2012/07/22/id/446166
Fortune: Rise in Unemployment Taxes Stymies Small Hiring
Sunday, 22 Jul 2012
Unemployment taxes are on the rise for businesses, as state
governments seek to raise funds to pay jobless benefits.
And those tax increases are making it difficult for small businesses
to hire more workers, Fortune magazine reports.
�After four years with a U.S. jobless rate hovering above 8 percent,
states have run out of money,� writes Fortune�s Nina Easton. �They've
borrowed from the federal government, and are now raising taxes on
business.�
So we face a scenario where a system designed to help victims of
layoffs get back on their feet actually prevents them from doing so.
That�s because the tax increases take money from companies that they
could otherwise use to hire new workers.
The hiring predicament of small businesses shines through clearly in
the National Federation of Independent Business� (NFIB�s) June survey
of its members.
"NFIB members didn't add a lot of jobs and don't plan to in the coming
months," the group said.
Taxes and government regulation/red tape represent the most important
problems facing small business, 40 percent of survey respondents said.
But former Labor Secretary Robert Reich isn�t buying it. He says taxes
aren�t the main problem.
�The real reason businesses aren�t creating more jobs is American
consumers � whose purchases constitute 70 percent of U.S. economic
activity � don�t have the money to buy more, and they can no longer
borrow as before,� the University of California, Berkeley, professor
writes in The Nashville Tennessean.
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