The United States president has proposed allocating $33 billion to give businesses a $5,000 tax credit for each new job position they establish this year.
Meant to spur job creation, the tax credit President Barack Obama is suggesting would be available for businesses of any size and would be retroactive to the start of the year, allowing businesses that created jobs in early 2010 to receive the credit.
To earn the tax credit, companies would have to show net increases in their staffing and payroll. For example, businesses cannot cut 20 employees and hire five new ones and still be eligible.
But it doesn't look as though many businesses based in Athens will be taking advantage of the tax credit.
Barbara Stout, owner of Athens Underground, 90 N. Court St., said she doesn't think she will create any new positions this year, even though her business has been surviving in the economy.
My business is actually the same
or maybe a little better she said, explaining that more people are shopping at her store because of the recession.
Because the clothing sold at Athens Underground is not high-end, people can better afford it, she said.
The economy is only just now catching up to Athens because the city is a bubble, said Josh Thomas, owner of Brenen's Coffee Café, 38 S. Court St.
For all of 2009 our business was pretty steady
he said, adding that now, at the beginning of 2010, he is seeing business slow a bit.
Thomas said that he did not know anything about the tax credit.
Chris Pyle, owner of Donkey Coffee and Espresso, 17 ½ W. Washington St., said local businesses just need to wait out the recession.
We can definitely tell that there's a recession
he said. Everyone can tell.
Pyle added that he knew about the tax credit and will take advantage of it if he can.
Athens Area Chamber of Commerce President Wendy Jakmas declined to comment on how the tax credit would affect local businesses.
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Jessica Lohner
