Bruce Bartlett harshes on some of the latest job creation proposals:
An employment tax credit for new jobs is...not a new idea. One was enacted during the Carter administration, revised by the Reagan administration and ultimately abolished by the George W. Bush administration. In practice it turned out to be very difficult to figure out what a new job was or prevent employers from gaming the system--firing a worker one day, rehiring him the next and claiming that a new job was created. Another problem was that many businesses, such as new startups, had no tax liability against which to apply the credit. Businesses also found the paperwork involved with claiming the credit to be more trouble than it was worth. Finally, a lot of tax credits ended up being claimed by businesses that just happened to be expanding employment for reasons unrelated to the credit. In effect, they were rewarded for something they would have done anyway.
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