Courtesy of Citybizlist – To combat rising unemployment, the pressure is on for government to do something, anything, to create jobs. So, you can expect that Governor O’Malley will present a jobs plan to the legislature at its Special Session in October. Various tax credit proposals are being floated to spur hiring in the medical and tech sectors.
The question is, will they work enough to create work?
Maryland’s HIRE program, the $5,000 tax credit for hiring the unemployed implemented last year, was only partially successful. Less than half of the $20 million allocated was used, resulting in about 1900 jobs.
That all of it wasn’t used won’t come as a surprise to most business people. Most companies hire because their business is growing. A $5,000 tax credit isn’t going to be enough incentive for a business to hire someone that is going to require a much larger financial commitment. While 1900 new hires are better than none, it’s likely that companies that got the tax credit were going to hire anyway.