The simple way to say this is that if the employees get the tax cut and the employers don’t, there’s no incentive for employers to create more jobs. Yes, the employees have more revenue to spend in the marketplace which might cause more economic churn, but it isn’t one that incentivises the employers to do anything.
Truth is that employers aren’t hiring for 1) fear of another recession and 2) fear of all the ObamaCare red tape that is coming. That’s why unemployment has been largely stagnant because government (largely Dems) refuses to remove those fears.
Exactly. The tax break is on the wrong side, but we couldn’t have greedy employers getting a tax break now could we.