Last Call

Behold Jim Pethokoukis, a man who has to blame Obama for causing the recession and jump in unemployment in the past by claiming the problem is legislation he may or may not get passed in the future.

So Corporate America is about to enter 2010 – an election year – with the fate of the ambitious Obama agenda uncertain. Maybe the only thing for sure is that whatever job-creation package the White House and congressional Democrats eventually gin up, it will likely be a $300 billion or so combo of more transportation spending, more aid to cash-strapped state and local governments and some sort of hiring tax credit.

(And that gets at another critical flaw with the jobs summit. As any of the executives could tell Obama, brainstorming sessions are often the tool-of-choice of the highly ineffective manager. Such confabs are frequently used to give team members the illusion that they are contributing to the idea generation process. In fact, the manager has already made his decision. And that is, more or less, the case with Obama. At the very least, don’t expect any CEO suggestions of lowering personal, corporate or investment tax rates to get even a whiff of consideration from the White House.)

Of course, Obama could pivot and revamp healthcare reform into a more incremental, targeted bill that might actually pass with decent margins in both houses. And while cap-and-trade is gasping for air, a deficit-neutral carbon tax (offsetting payroll taxes) might actually pull in significant Republican support. Maybe even a fat payroll or corporate tax cut.

So, Obama shouldn't even bother to talk to CEOs, he just needs to shut the hell up and give them those fat tax cuts so...what, exactly, Jim?  Cutting corporate taxes sure as hell isn't going to create jobs, not when those cuts will go to profits and bonuses for execs.  Wages have remained stagnant in this country for 30 years.  The middle class is dying, there's no demand to support expansion in hiring because of wage stagnation and American consumers being tapped out on credit and equity, and your big plan is more corporate tax cuts?

Idiot.  What company is going to take tax cuts and spend it on raises for the rank and file?  How will cutting taxes create anything but fat profits for shareholders and workers getting shafted?

We have tax cuts we can't pay for now.  At least job spending would contribute to the economy and actually create demand...and jobs.

But I do agree with Jimbo here on one issue:  Obama certainly can remove a lot of unknowns from the equation by getting his bill passed by his own damn party.