The following is a guest post by Mike Cushing.
Tonight is the second presidential debate. With unemployment hovering just below 8 percent and the economy still recovering, it is no surprise this election has essentially come down to jobs and job hopes. Recent job numbers may suggest things are improving, but the country is in the midst of a growing economic argument about how to properly create jobs. There are many factors at play in the upcoming election from entitlement reform to healthcare, but for many Americans, the most important issue is getting back to work.
So, how will each candidate’s plan for job growth affect the employment market? Below you’ll find some of the major ways President Barack Obama’s and Governor Mitt Romney’s platforms will affect you and your job search after the election:
Taxes for Employers
Both candidates see small businesses as the drivers of the American economy, though they have different means of encouraging businesses to hire new employees.
- The President has been touting payroll tax cuts for individuals and businesses since he took office, and signed an extension of that tax cut earlier this year. That extension included halving the tax paid by employers on the first $5 million of annual payroll, freeing up money to hire new employees. Obama’s current plan calls for a doubling of that tax cut and adding new tax cuts for small businesses and companies that hire new employees.
- Though he has yet to release full details of the plan, Romney has said he plans on cutting the corporate tax rate to allow businesses to operate more freely. Given the lack of details, and the amount of time it would take to rewrite the tax code, this may not have an immediate affect on jobs. However, Romney believes his cuts to middle class and small business tax rates will help create seven million new jobs.
Energy
The candidates have markedly different opinions on the best way to achieve energy independence — and which industries to support to do so.
- Obama has been a large proponent of green energy projects and jobs. Large public failures like Solyndra have made the issue a sore spot for Obama, but that doesn’t change the fact that there are up to 3.1 million “green” jobs in America. Obama has called for an extension of a clean energy tax break that could mean thousands of jobs and the growth of cleaner energy.
- Romney’s plan focuses on securing and increasing production of the country’s natural energy resources such as coal, natural gas, and oil shale. A Romney administration would help boost production by helping energy companies with relaxed restrictions and regulations. This may mean more jobs in these industries and decreased energy costs for small businesses that may also result in more jobs.
Role of Government
Again, there is obviously a stark difference between the two candidates. Romney has criticized the President of forcing “trickle-down government” on the country, while Obama believes that government can play a role in promoting job growth.
- Obama’s plan promotes government spending — offset by increased taxes on richer Americans — as a means to build up American infrastructure and hire more state and federal workers. Obama’s plan to fix the country’s infrastructure comes at a time of historically low interest rates and could create up to 400,000 jobs, according to Moody’s Analytics.
- Romney, on the other hand, would focus on getting government out of the way of business to allow more natural growth through cuts in government regulations and taxes. His plan depends heavily on the impacts of his tax plans, which would close loopholes and end deductions. While it would help employers hire more workers down the road, his plans may also hurt ailing industries like the housing market by ending popular mortgage deductions and other benefits.
The Bottom Line
Both candidates have plans they say will grow the economy and create jobs. So far, Romney’s plan has remained light on details, but with a focus on removing government regulation and reforming tax codes, his plans are more long-term in scope. His plan would cut government to allow citizens and businesses to invest more in themselves to eventually grow the economy.
The President’s plan will have a more immediate impact, though its long-term efficacy may be in question. By investing heavily in new energy and new infrastructure, Obama’s plan will create hundreds of thousands of new jobs in the short-term, with an eye to hiring many more teachers, police officers, and other public servants. Though it’s easy to disagree with the President’s view of government creating jobs through public investment, his plan remains very similar to the American Jobs Act put forward last year.
About the Author:
Mike Cushing is a freelance writer for Incepture, a Florida staffing agency that offers employment services for the healthcare, IT and financial fields. In 2011, the staffing agency filled more than 1 million job hours throughout Florida.
