How are jobs really created? Would a business hire a new employee because of a $4,000 credit given by the government? I don’t think so.
As a small-business owner, I only hire when I really need a helping hand, not because of some kind of credit.
Moreover, many industries should not be encouraged to hire anyway. As technology advances, as consumer behavior changes, and as the world increasingly gets smaller, many of the jobs, such as manufacturing jobs, will simply not return here the U.S. These jobs can be done more efficiently in Third World countries. That is how you and I are able to purchase low-priced goodies from Walmart.
How can a job be really created in U.S.? The real job growth comes from people who start their own businesses — in other words, entrepreneurs. Yes, the historical understanding was that 90 percent of them would fail in one year. However, new data indicated that only about 40 percent did. That is a whopping improvement from the previous assumption.
Out of this 40 percent, perhaps 10 percent of them will eventually hire somebody down the load. Even if they don’t hire somebody else, at least they have hired themselves and have effectively taken themselves out the job market. Moreover, 1 percent of the 40 percent may become new Taco Bells, or In-N-Outs, or Googles. That is the kind of job creation we really need.
As for the city of Tracy, we have relied on real estate taxes to meet our financial needs for way too long. Given the current real estate market and economy, that amount of tax dollars may not come back for a long time.
What is our best solution? I say to encourage organic growth. In other words, we need to create an environment in which an entrepreneur can thrive.
How do we create such an environment? For one thing, Tracy can eliminate business taxes for new start-ups for two years. One may argue the city of Tracy is out of money, it desperately needs additional revenue to make up the shortfall. Therefore, Tracy can’t give out such an incentive. Well, Tracy can’t collect the money if there isn’t a business starting here. On the other hand, if more businesses open doors in Tracy, it certainly will create jobs down the road.
We need a lot more restaurants, we need service businesses. We need a main street that features many ethnic cuisines — why can’t our downtown become such an attraction?
Livermore has done it, so should Tracy.
When people say the $4000 won't help. And then they say the tax break would help it tells me that business wasn't a good business to begin with. Any business should have a plan and know how to deal with the resources they have available. Including their finances.
If you give someone extra time to complete a project they usually take that extra time. Whether their project needed it or not. If you give a tax break the money goes like paper and fire.
If you give someone a loan and they have to pay it back and they usually spend the money wiser than if you just hand it to them on a silver platter. Works that way when you give a college student a car verses making them pay for it.
They take better care of it. And that wise use of money is what creates jobs.
Not just economic bubbles like the Clinton housing policies that resulted in serious collapse of our entire world economy.
The best way to create jobs is by being supportive of businesses and by holding them accountable.
If people want jobs in Tracy they should start by fostering enterprenuring clinics in Tracy. Not just talk about tax breaks that would lead to a complete collapse of our economic infrastructure, like public safety, etc.
People go elsewhere for jobs because the Democrats have turned California into a third world country with welfare recipients and environmental, red-tape.
In this economy the elimination of business tax would only encourage hobbyists and further serve to push the tax burden onto a parcel tax.
"We need a lot more restaurants, we need service businesses. We need a main street that features many ethnic cuisines — why can’t our downtown become such an attraction?"
People in our town arent attracted to ethnic cuisines because of the demographics. Our city (and downtown) has several stores and restaurants that cater to several different ethnicities. Yet people still won't go there.
While, every day, the downtown Carniceritas are full of people.
Simple demographics.
If you want jobs. But the federal government gave the banks carte blanche to hold off loaning entepreneurs money.
Local? You decide.
New Hire, no experience... 4.00 an hour plus 4.00 an hour from the 4,000. When business improves with the help of the new hire, you could raise the salary and go at it independently in paying salaries?
Just a small jump start from the Government?
This is my guess as to why the amount was so low, but heck it is better than nothing.
CN