First let me say tax free HSAs seem like a great idea to me. I don’t know why there ever was a liberal / conservative schism over HSA’s. They are needed simply for the rising costs of co-pays and premiums. It makes no sense that employer healthcare costs are untaxed but the ever increasing employee part s fully taxed. So, while its outright silly to try to tie one job to this policy this may be the only thumbs up i ever give Walker.
But this is what really caught me…
EVCO President Dale Evans said that while he strongly supports the governor’s message of job creation, this bill, or even one that gives a $4,000 tax credit for each job created, won’t necessarily create a job at the plastics manufacturer.
“It’s a nice help; I can’t honestly say it would be a great incentive,” said Evans. “Because we’re going to be hiring people if we need them. We won’t hire them if we don’t need them.”
EVCO would need to hire employees if companies they contract with, such as Sub-Zero, John Deere or Mercury Marine, add jobs.
“I create jobs because of demand for products,” said Evans. “What these (bills) do is create more of a demand for products in Wisconsin, and that gives me more business, so that’s a good thing.” – WISC Madison.
Is not this what Krugman has been saying for some time. its Demand Stupid. The right kind of tax cuts may work in a situation of strong demand but we are not there. Our economy has very weak demand and any demand we are not likely to benefit from.
This is one reason the stimulus – as a stimulus – was a complete failure. Any demand it created was in China. I believe it was something like a 70 / 30 foreign / domestic benefit ratio.
Now the free traitors won’t want to hear this but it was Bush who was able to increase demand. It did not occur with stimulus nor silly tax cuts but Tariffs. In 2006 as part of WTO Chinese reprimand GW instituted the full tariff on hangers. The net result increased American demand to produce hangers. Two companies that went out of business in the 1980’s re-opened their doors. One company was in Wisconsin. Obama had a similar opportunity with tires but choose the lowest tariff levels available. No demand what so ever was created.