The Role of Government in Job Creation

Introduction

In the current state of the economy, it is difficult for businesses to create jobs. The government needs to step in and provide a solution. One way they can do this is by providing subsidies for business to hire more workers. They can also provide grants or loans for start-up companies that want to hire more people.

The government should not just hand out money and hope that these jobs will be created. They need to work with businesses and help them find the best solutions for their problems.

“The government needs to be more strategic in order to address the issues of unemployment” according to Orinda businessman and startup entrepreneur Alan Safahi.

They need to work with businesses and help them find the best solutions for their problems. This will allow for the creation of high-paying jobs that are more in demand in different industries”.

What is the role of government in job creation?

“The government has a role in job creation. The government can incentivize business owners to create more jobs by lowering taxes on labor and employment” continues Safahi.

Taxes on jobs and taxes on labor are two different concepts. Taxes on jobs are the amount of money that is taken from an employer’s profits, while taxes on labor are the amount of money that is paid by employees to the government.

Necessity for a Course Correction on Taxation

“The Tax Cuts and Jobs Act has been a boon for job creation, according to Safahi.

It is the first time in more than three decades that a tax reform bill has been passed with bipartisan support, and it is the first major overhaul of the U.S. tax code since 1986. The Act made significant changes to individual income taxes, corporate taxes, international taxation, retirement savings, and other areas of the law.

The need for a course correction on taxation became necessary because of the Tax Cuts and Jobs Act’s success in job creation. The measure is expected to create 1 million new jobs over 10 years as well as contribute to 3% GDP growth over that same period.

How to Transform Government from a Negative Force to a Positive Force for Job Creation

The government has always been seen as something that is an obstruction to business, but that is no longer the case. The view of entrepreneurs like Safahi is that the government can also be a positive force for job creation:

“The government should not be a hindrance to the growth of the economy. It should instead be a facilitator and a catalyst for job creation’ says Safahi.

The tax cuts will create jobs by making it easier for companies to invest in new projects and hiring more employees. The government can also provide incentives to companies that are creating jobs, such as tax breaks and other benefits, which would result in more job creation.

Originally Posted: https://safahi.com/role-of-government-in-job-creation-c6534b2f851b