weekly response

Plead Ignorant No More
By Leo Brown
[President Obama's Weekly Address]

Senate has passed the Returning Heroes Tax Credit, a part of the American Jobs Act, which will grant tax credit to businesses for hiring returning veterans. The idea is that America should provide for its soldiers, and that no one, after putting his or her life at risk for country, should have to suffer from unemployment. This principle, upholding the legacy of the GI Bill, found bipartisan support in the Senate.

Fiscal conservatives who support this measure have more to explain than their respect for military veterans. Why, now, should the government meddle with the economy and use tax dollars to influence business decisions? This is not consistent with their commitment to austerity and small government.

Presumably, the thought is that veterans deserve particular respect for their unique form of service. This is the sort of sentiment that Democrats and Republicans usually share.

If this is the case, it points squarely to a troubling conclusion. Though fiscal conservatives usually oppose tax credits, they blink when the beneficiaries are veterans. This is a tacit, but hardly subtle, acknowledgment that judicious fiscal stimulus does work to reduce unemployment. This, of course, is why they are supporting it: it will reduce unemployment among veterans.

But while the national unemployment rate sits at 9%, fiscal conservatives only consent to provide veterans with these benefits. As a result, no other demographic will see their unemployment rate budge.  A tax credit incentive to hire recent college graduates, or single mothers, or people with purple hair could reduce their unemployment rate as well. There is now no doubt that Senate Republicans understand this concept.

With such a weak economy, many businesses are reluctant to take on more employees. The Returning Heroes Tax Credit will give some of these businesses an opportunity to safely expand and invest while shielding veterans from unemployment. Hopefully, once Americans see the concrete, indisputable results of this program, they will realize our country's potential and call upon elected officials to act in our best interest.