The Obama administration hopes 3.5 million new jobs will be created in three years with its new jobs bill. The goal probably won’t be reached, but we have to start somewhere, because too many people remain unemployed.

Jobs are the backbone of our economy. It was the promise of well-paying jobs that brought so many of our ancestors to America, and has continued to attract newcomers to our shores. Good jobs enable people to own homes, feed their families and pay taxes, which provide high quality education and other public services.

Right now our business economy is slowly recuperating from a deep recession. The job growth horizon is uncertain for the near term. Our recent heavy snows and rains affected the economy by limiting the number of days businesses could stay open, and many employees went unpaid on holidays. Businesses are now starting to show signs of growth again, but employment in the future will continue to rise and fall each month ”“ in all industries.

Our government needs to help jump start new job creation ”“ and in a major way ”“ because in addition to the millions of people out of work, another one million new job seekers will come on the market each year, as students graduate and immigrants continue coming to the U.S. It is estimated that we could see unemployment hover around 10 percent for the next three years. 

We need to reduce the ranks of the unemployed for many reasons. First, people need jobs to support themselves and their families. Second, when people earn wages and salaries, they spend their income on goods and services that help get the economy growing again. Finally, jobs support democracy. When people go hungry or lack decent housing, they may turn to crime or anti-government activities.

The administration jobs bill is geared to big business needs. Yet, it is small businesses in America that have historically generated the most new jobs. Small businesses employ over 50 percent of all employees in our country. Small businesses now need to create new jobs, and they need incentives. 

To help small businesses create additional jobs, three things have to be done. First, taxes on small businesses should be decreased, not increased. To help small businesses hire more employees, we need to lower federal payroll taxes on businesses that increase hiring. A lot of people may have to take jobs paying less than they earned two years ago. For them, the extra savings from lower payroll taxes may mean a lot in buying power.

The administration is proposing a $5,000 per worker tax credit for each new job small businesses create, with a cap of $500,000 per business hiring up to 50 new workers. Although it can add up for big companies, with thousands of employees, it is not much incentive for smaller firms. But, with a little luck, some long-term unemployed may start to work again because of this tax credit.

The government also needs to stabilize rather than increase taxes. Many businesses are still uncertain about expanding or adding new jobs because of the uncertain future. The government should temporarily hold off adding taxes and tougher regulations on small businesses.

Small businesses should get tax breaks on capital equipment to automate and upgrade their operations in the market place. The government must temporarily eliminate capital gains taxes for investors in start-ups or established growing small business ventures.

Second, banks must also start lending to small businesses, and government can help, not with regulations, but with guarantees. Loans to small businesses are risky ”“ even more so after a recession. The government must not only loan cheap capital to local community banks to give loans to small business borrowers, but also help the banks take reasonable risks.

SBA loan packages, like 504 loans for capital assets of equipment or real estate, should be available with SBA guarantees up to 75 percent, for bank loans to small businesses. The SBA needs to expand its micro-lending program for the very small start-up companies of less than five employees.

Third, the government should look at past job creations similar to the old WPA that occurred after the Great Depression. Building bridges, roads and commercial structures employ many people and provide needed services and infrastructure for communities, at the same time.

Jobs are needed right now.

It will be difficult to get bipartisan support for a job plan, but now is the time. A bill like this could change the job landscape for the better.