Why there won’t be an economic recovery under Obama

Sure, the latest unemployment stayed at 9.7% — something that the Obama administration considers positive news. Yes, this administration has gotten to the point where maintaining the status quo in the jobless rate is touted as recovery. But there’s a fine print: plenty of temporary hiring by the census and IRS buoyed that 9.7% number. So don’t open that champagne to celebrate yet…

Then there’s the passage of ObamaCare. It’s the long-sought victory of President Obama and he was finally able to make it happen. What a proud moment for the young president. But ObamaCare is going to kill American small businesses, the economic engine that keeps the country humming. No doubt the large corporations will also feel the burdens of ObamaCare, but with their team of accountants they’re able to do creative accounting (e.g. establish foreign entities, etc.) to minimize the impact. It will be the small businesses feeling the greatest pinch:

By one estimate, the effective tax rate on the 26 million small businesses across the country — which in the past have accounted for more than half of the job growth in the US — has jumped to 50 percent from 40 percent, sucking valuable cash from the businesses.

If the cash goes into the government’s coffers, then there won’t be money left to pay for new hires. How is it that the Obama administration expects the job market to improve with the heavy tax burden? The economy doesn’t work that way. That’s why any tax credit given to companies which hire new workers is simply a cruel tease.

Brace yourselves, it’s going to be a very bumpy ride in the Obama economy…