Uhh, something really ought to be done about unemployment

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You have to be careful. Employers could lay off employees, then hire different ones, just to get the tax credit. That's why attempts at targeting tax incentives rarely work: they're too easy to exploit.

Better to use simple policies, like broad reductions in tax rates that give employers more working capital to expand.

just give us the money we will trick you out of it anyway.

Exactly. While well-intentioned and pragmatic, it rarely plays out accordingly in real life. Simple policies that improve the business communities perception of the environment they are in, and helps them be more confident about the decisions they make are the way to go. They've been gutted to the bone by the recession and will use any measures you give them to get back up or shore up in case of another dip in the economy - which is not helpful to taxpayers, people looking for employment, or the economy as a whole.

Hence the two-year rule or something like it.

ruveyn