StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Tax Credits Dont Help the Economy by Charles Lane - Essay Example

Cite this document
Summary
The paper "Tax Credits Don’t Help the Economy by Charles Lane" discusses that tax credits are impractical and unsound job creation measures which are mostly intended to accrue political gains. They most of the times fail to create jobs for the targeted communities and threaten small businesses…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.7% of users find it useful
Tax Credits Dont Help the Economy by Charles Lane
Read Text Preview

Extract of sample "Tax Credits Dont Help the Economy by Charles Lane"

 Cause and Effect Essay The editorial Targeted Tax Credits don’t Help the Economy by Charles Lane published in the 8 November, 2011 edition of The Washington Post delves on the tendency on the part of the politicians to offer tax breaks to the businesses as an incentive for creating jobs for some specific segments of the community like the veterans. Even, President Obama has included two such provisions in his American Jobs Act to aid the unemployed and disabled veterans.

One of the most important reasons that the politicians across political hues tend to favor such tax credit policies is because they happen to be politically favorable and successful short term populist measures. For instance, President Obama has chosen to highlight his tax credit measures at varied political and social platforms because, it goes well with the national organizations affiliated to the interests of the veterans and it makes him come out as really being veteran friendly. A large number of the Republicans are more than willing to support this proposal because they also want to be seen in a positive light by the veterans.

As a consequence, supporting tax credits seems to be a recipe for sound politics. Political opportunism is one of the most important reasons that go in the favor of tax credits. However, if one takes into consideration the research, statistics and data garnered by the responsible academic bodies of opinion and the organizations like Labor Department Inspector General, one arrives at the conclusion that tax credits have not been effective at all in creating jobs for the targeted groups and they constitute a political gimmick and an economically unsound way of helping veterans.

The recent tax credit measures will fail to generate results because they will be applicable to all the veterans and not specifically to the post 9/11 related veterans, whom these tax credits intend to help. On impact of such unsound employment policies is that they do more harm than good to the businesses by compensating them for hiring not required and not qualified employees. The direct result of these measures is that they disturb the effectiveness of the small businesses, where the survival is directly dependant on marginal returns.

One other consequence of the tax credit measures is that they are mostly exploited by the big corporations that generate maximum low-wage jobs, which use these credits to earn profits, without investing them for creating new jobs. The other direct result is that businesses tend to see these credits more as subsidies and not as incentives, which dilutes their interest in the targeted communities. So, simply speaking tax credits are impractical and unsound job creation measures which are mostly intended to accrue political gains.

They most of the times fail to create jobs for the targeted communities and threaten small businesses. Besides, they are exploited by the big corporations, which do not use the profits so made to create more jobs. Works Cited Lane, Charles. “Targeted Tax Credits don’t help the Economy”. The Washington Post. 8November 2011. 11 November 2011 .

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Tax Credits Dont Help the Economy by Charles Lane Essay - 3”, n.d.)
Tax Credits Dont Help the Economy by Charles Lane Essay - 3. Retrieved from https://studentshare.org/macro-microeconomics/1583825-cause-and-effect-essay
(Tax Credits Dont Help the Economy by Charles Lane Essay - 3)
Tax Credits Dont Help the Economy by Charles Lane Essay - 3. https://studentshare.org/macro-microeconomics/1583825-cause-and-effect-essay.
“Tax Credits Dont Help the Economy by Charles Lane Essay - 3”, n.d. https://studentshare.org/macro-microeconomics/1583825-cause-and-effect-essay.
  • Cited: 0 times

CHECK THESE SAMPLES OF Tax Credits Dont Help the Economy by Charles Lane

The Fixed Rate Mortgage: Availability of Finance

This paper focuses on Jane who discovers that the lender will offer her a mortgage with an interest rate of 7.... 5% APR, fixed for five years.... Jane has heard on the news that 89% of first-time buyers are now taking out fixed-rate deals so she wishes to give this offer serious consideration.... hellip; Jane has to determine the length of the mortgage....
8 Pages (2000 words) Essay

The Rapid Globalization Process

With the Indian economy being widely boosted by its massive software development industry and Business Process Outsourcing operations, the country is becoming a hub for international dealings, and the life styles of the new generation of Indians are affected by global products and global trends (India and The Global economy 2006)....
15 Pages (3750 words) Essay

Northern Foods Profitability, Liquidity, Activity, Gearing and Investment

This paper "Northern Foods Profitability, Liquidity, Activity, Gearing and Investment" provides an in-depth analysis of the financial position of Northern Foods for the years 2007 and 2006 ending on 31st March respectively by using Ratio Analysis of Financial Statements of the aforesaid years.... nbsp;… The main competitors of Northern Foods Plc are Nestle, Uniq, and United Biscuits whereas Nestle has a global presence in most of the countries and has strong potential to compete in different brands of Northern Foods Plc....
15 Pages (3750 words) Case Study

Myth or Truth: The Melting Pot Can Lead Economic Egalitarianism

Americans like to think they can be completely independent of government help.... Government programs are in place to help economically challenged people obtain the tools they need for success: homeownership and college educations.... All citizens are expected to contribute to this government “help” by paying taxes on their income and investment earnings.... rdquo; All citizens of the United States are dependent on the government in dozens of subtle ways, from infrastructure to tax laws (USA Today)....
3 Pages (750 words) Essay

Addressing Climate Change: A Legislative Brief

The current assignment reveals a proposal letter that suggests implementing a governmental policy aimed towards addressing the issue of climate change and its implications on the environment.... Additionally, the assignment provides an outline of the climate change bill.... hellip; There are a number of serious threats facing the world today, but few are more serious than the problem of global warming, climate change, and environmental degradation....
9 Pages (2250 words) Assignment

The Trend of Economic Growth in the UK Economy

However it is evident that there is a long recovery period after the 2008 global financial crises of UK's economy.... During this period economy grew to around 5 percent until it was faced with recession in 2008.... Interest rate in the UK's economy was low from 1993 that further fell to 3 % in 2003 as seen from figure 12 from the case....
12 Pages (3000 words) Essay

The Irish Economy

The main idea of this paper under the title "The Irish economy" touches on the indormation of Irish economy which has been an ideal case of a country which roller-costered from being a country labelled as “Poorest of Rich”.... 8 billion in 2007 (economy Watch, n.... The Irish economy was in a boom, and there was an increased transaction in the real estate markets.... Ireland had mainly been an export oriented economy....
8 Pages (2000 words) Essay

Procurement Finance and Inventory Control

This report focuses on the ratio analysis of the organization and also suggests the ways in order to improve the cash flow situation of the company in order to minimize its bank borrowing on overdraft.... It further focuses on the reasons to hold stock.... nbsp;… The financial analysis of a company is done in order to evaluate and interpret the financial data along with the other information in order to plan an assessment of the present and future financial condition of the company....
12 Pages (3000 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us