Career Advice & News Center

President Barack Obama will travel to Baltimore on Friday, January 29, to unveil his job creation proposals, which he hopes will help to sink the 10 percent unemployment rate.

In his State of the Union address on January 27 , the commander-in-chief said that job creation "must be our number one focus in 2010," adding, "we should start where most new jobs do - in small business."

Obama's job creation propels hinge mostly on tax cuts. His latest plan calls for a tax credit of $5,000 for each new employee that a business of any size hires. The credit would be retroactive to the start of 2010, and startups launched within the year would be eligible for half of the funds, CNN.com reports.

Specifically aimed to benefit smaller companies, the tax breaks would be capped at a total of $500,000.

The White House estimates that the initiative will cost $33 billion and will benefit about 1 million businesses nationwide.

In addition, Obama will propose a reimbursement of Social Security taxes that businesses pay on their payrolls for 2010. To be eligible for the compensation, companies would have to raise wages, increase the hours of their current workers or take on new employees, says the news source.

If the proposal is eventually passed by Congress, it will certainly give employers an incentive to take on new workers, though some businesses are less than thrilled.

Jimmie Hughes, the owner of the office supply business Grand American in Richardson, Texas, told the news source, "I need money before I hire people, not after I hire them."

He added, "It all comes down to cash - how much cash do I have to apply to what I owe my vendors?"

In December, the House of Representatives passed a job creation bill that calls for a $74 billion investment in transportation infrastructure products and an increase in federal aid to states.