Riley Announces Plan for Jumpstarting Jobs

Governor Bob Riley used long established Mobile business Pollman's Bakery as a backdrop to announce his plan to spur more hiring in the state. The plan includes a $1500 tax credit for small businesses who hire unemployed workers and another $1500 credit for small businesses that hire workers in the 25 counties in Alabama with the highest unemployment rate.

Riley said, "This is not a plan that will see results next year, or in two years or three years. If the legislature will pass it we can start seeing the benefits immediately."

The plan also includes a tax break for employer paid health insurance.

Riley said while he doesn't agree with the President on much, he believes that the President's proposal for a $5000 tax credit for businesses that hire, coupled with the state's incentive, could have a big impact on small businesses. "That's a tax credit, not a deduction--come right off the bottom line," he said.

But business owners say while they welcome a tax credit, its far from an incentive to hire. Some, like Ralph Paul at Cottage Hill Ace Hardware believe that the recent hike of the unemployment tax has all but put a freeze on hiring. "We can't afford to pay the taxes," he said.

And Saucy Q Bar-B-Que owner Elbert Wingfield, who listened to the Governor's press conference said he wanted to hear about financial support, either from the government or banks. "I didn't hear any of that," said Wingfield. Business owners said more business and a growing economy is the incentive they need to hire more workers. But if banks aren't lending and people aren't spending, all the tax credits in the world won't change anything.