Reuters | There are “growing signs” of a recovery in the U.S. economy but the high unemployment rate remains a big concern, White House economic adviser Lawrence Summers said on Monday.
Summers said the economic outlook had improved markedly since the credit crisis of 2008-2009 that spurred fears of another Great Depression.
Forecasters are shifting their focus from debating whether there will be
a double-dip recession to debating the pace of growth, said Summers,
who spoke at the Johns Hopkins School of Advanced International Studies.
But Summers, director of the White House National Economic Council,
referred to the millions still out of work in the United States as an
“economic emergency.” The U.S. unemployment rate is currently 9.9
percent.
Listing some of the risks to the U.S. economy, Summers mentioned the
European debt crisis, which he said had introduced “uncertainty” into
the global economic outlook, which could have implications for the
United States.
According to The Hill,
“A study by the National Center for Policy Analysis shows that tax credits in the new healthcare law could negatively impact small-business hiring decisions.
The new law provides a 50 percent tax credit to companies offering health coverage that have fewer than 10 workers who, on average, earn $25,000 a year. The tax credit is reduced as more employees are added to the payroll. …
Using insurance premium cost projections supplied by the nonpartisan Congressional Budget Office (CBO), the study states that the credit reaches its optimal point at 13 workers, with relief peaking at $36,400 for qualifying business.
After the 13th worker the economics surrounding the credit change, the study says.
For employers with 15 workers, taking on an additional hire will reduce the credit by $1,400. For a company looking to expand from 20 to 21 workers, the credit will shrink by $3,733. And businesses will take a $5,600 reduction on the credit when hiring the 25th worker.
The credit phases out for companies with at least 26 employees.
Gee, I wonder why small businesses aren’t hiring.
But they claimed that the recession was over. They should be able to hire all of the illegals (tax free) now.