Posted by spcwt, a resident of the Danville neighborhood, on Sep 27, 2010 at 8:12 am
Congress is making the situation worse because their legislation is causing a lot of uncertainty about taxes and costs, which makes businesses nervous about hiring.
For example, 78% of small business owners expect their business costs to rise due to Healthcare Reform. Nearly 50% say this makes them concerned about hiring new employees. Web Link
And now Congress says they're waiting until after the election to decide whether to extend the Bush tax cuts.
How can businesses make hiring decisions today when they don't know what their taxes and healthcare costs are going to be next year?
Consumers are waiting to find out how much taxes they're going to owe next year before making a big purchase, like buying a house or car. They want to make sure they can afford it.
Investors wait to know whether taxes on dividends and capital gains are going to rise before making stock market and other investments.
After the financial meltdown, the President and Congress could have helped the economy heal by focusing their attention on the economy only. Instead, they undertook radical steps to transform healthcare and energy and never bothered to address critical issues like taxes, social security funding, and entitlement reform.
Uncertainty about taxes and costs paralyzes businesses, consumers, and investors.