Three important reads as we anticipate Obama's jobs plan and Republicans' response to it

Ryan Streeter
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As Obama gears up for his jobs speech by nominating Alan Krueger to head his Council of Economic Advisors, and as the Republican Study Committee prepares to offer a competing growth agenda, here are three important reads from the past few days:

Why Obama cannot propose a real jobs program. Paul Roderick Gregory writes at Forbes: “Obama cannot propose a real jobs program. His constituents would rebel. A real jobs program attacks too many of the core beliefs of his party, such as minimum wages and higher taxes on the better off.” Gregory goes on to suggest a fairly detailed 5-point plan that Obama could offer, if he really cared about jobs.

Why Obama’s existing budget will soak small businesses and counter his so-called jobs push. Scott Shane writes at The American: “Among the tax increases that would hit small company owners proposed in the president’s budget are a higher marginal tax rate on income from sole proprietorships, Subchapter S corporations, and other pass-through entities; increased capital gains taxes on investments by high earners; repeal of the last-in-first-out approach to inventory accounting (LIFO); and treatment of private equity and venture capital carried interest as ordinary income.”

Any growth agenda needs to focus on spurring more new (not just small) business creation. Edward Muller and Larry Zimpleman offer a list of recommendations from the Kauffman Foundation in today’s WSJ and say: “There is no hope of giving consumers renewed confidence in America unless governments at all levels mount a vigorous effort to get rid of rules that discourage entrepreneurs from launching and growing new businesses.”