According to The Entrepreneur, the President's new plan will be extremely successful in growing jobs in the small business sector. Tax cuts for business owners and workers as well as incentives for small businesses to hire are the primary plans for small business job growth.
Meanwhile, The Heritage Foundation says the new plan has trouble in store for charity organizations. Because of the high cost of the bill ($447 billion), Obama plans to raise taxes on the wealthy (those making at least $200,000 annually) by lowering the rate at which taxes can be deducted from charitable gifts from 35 percent to 28 percent.*
What does this mean for the nonprofits? As the wealthy taxpayers are being taxed for the donations, they will be less and less likely to give, which will result in a significant drop in the nonprofit sector's money supply. In addition to this problem, the article quotes that nonprofits hire almost 10 percent of the national workforce. With nonprofits in financial trouble, many of those jobs will disappear.
The President's jobs plan has the potential to both create and destroy jobs. Should we put the jobs of 10 percent of the population at risk for the possibility of creating more jobs?
Read these articles and decide for yourself. Don't forget to leave your thoughts in the comments!
*For example: "American citizens in the highest marginal personal income tax bracket are taxed at a rate of 35 percent. If they donate to a charitable organization, they can receive a tax deduction at the same 35 percent rate. For example, if a couple in this marginal bracket gives $10,000 to a hospital, they can write off $3,500 when filing their taxes." (Heritage Foundation)
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