Obama pushes for new stimulus, jobs spending Package would include tax breaks, tax incentives, infrastructure project By Kevin Smith, Staff Writer Posted: 12/08/2009 06:13:09 PM PST
President Barack Obama is looking to spend as much as $150 billion or more in federal money to fund work projects, give tax breaks and incentives to benefit the economy and curb double-digit unemployment.
A local economist said such measures would be welcome - provided they are temporary.
A major part of his package is new incentives for small businesses, which account for two-thirds of the nation's work force. He proposed a new tax cut for small businesses that hire in 2010 and an elimination for one year of the capital gains tax on profits from small-business investments.
The plan also would eliminate fees on loans to small businesses and provide federal guarantees of those loans through the end of next year.
... Los Angeles County's jobless rate climbed to 12.8 percent in October, and some local cities have posted unemployment rates of 15 percent and higher.
November unemployment figures for California and its regions are scheduled to be released Dec. 18.
Esteban Arellano, operations manager for Staffmark, a commercial staffing firm in La Puente, said his company has been placing lots of temporary workers with businesses like Home Depot and Office Depot.
"It seems like businesses are coming off of that scare and want to hire now," he said. "But they're taking precautions by going through an agency."
The use of temporary workers has a number of benefits, according to Arellano.
"They don't want to spend money on hiring and then have to lay people off," he said. "They save on unemployment, workers' comp and having to invest in search sites like Monster.com. They leave all of that up to us and they just see one flat bill."
"The hiring of temporary workers has surged, suggesting that the nation’s employers might soon take the next step, bringing on permanent workers, if they can just convince themselves that the upturn in the economy will be sustained..."
Joe Massoud was on Fox Business this evening. Temp hiring is up and can be a sign for more permanent jobs, but some companies may use this as an opportunity to restructure their permanent to contract employee ratio. He also stated that some of the CODI businesses were looking at individuals that had been let go by competitors and hiring them. Pays to have cash available in times like these.