How to Create Jobs in the Nation’s Capital

Sep 17, 2015 by

Job creation is constantly a topic that gets thrown around when talking about politics and it continues to be not only one of the most important things right now, but something that absolutely needs to be addressed and fixed. There is no debating the fact that the economy is struggling and real figures purport that the real unemployment rate is nearly double the figures that are being told to the public. Tons of people have lost their jobs and thus have lost their homes and other possessions that they might have had and because of this, efforts have been created to bring more jobs about.

The government has created CAPCO programs, which basically are tax credits that are given to insurance companies. These tax credits essentially offset costs that the insurance companies would have incurred throughout the year and can be used then to loan out to businesses that are based in the Washington DC area. You can sort of think about this as the government taking a chunk of money that they have received through taxes and instead of spending it on various things that need to be taken care of for general purposes, they are putting it back into insurance companies, who can then loan the money out to local businesses.

This creates more opportunities for various companies to rebound and it eventually stimulates the economy through job growth and increased economic activity. Without programs such as this in place, many businesses were finding that although they could prosper if they had enough money to get started, most of them did not have the funds and could not get their hands on any startup money.

This has been an effective system and in the long run, these local based businesses in the Washington D.C. area that have been generated or rejuvenated will end up paying taxes in the long run, paying money back into the original money that was loaned in the first place.

When you consider the fact that they will slowly be recuperating the money that they had doled out in the first place, it shows just how effective these types of programs have been and the drastic impact that they can have on a community in a positive way. It is also important to note that the government does not have anything to do with the loaning process, which is still negotiated between the CAPCO programs and individual businesses.

Related Posts

Tags

Share This