Tapsearch Com EditorJobs stimulus not real
February 23rd 2010 18:37
by Ray Tapajna
New bill to create jobs will take jobs away too.
In the new job stimulus bill, employers would be exempt from paying their part of the Social Security payroll tax amounting to 6.2 percent to hire workers who have been unemployed for 60 days or more. The plan also provides an additional $1,000 tax credit for workers retained for at least a year. Cost to taxpayers would be $1.3 billion dollars. Another $57.3 billion would be for highway projects, equipment write-offs and Build America Bonds in the same old trickle down economy by big government now instead of President Reagan private sector way. The trickle never gets down to the workers or small businesses.
This again is putting the cart before the horse economics - See Obama's cart before the horse economy.
However, the payroll tax is finally identified as a terrible overhead for companies in the USA and that the payroll tax is actually a flat tax on the working poor. But, applying an exemption to new hires will also be a negative in keeping other workers who have jobs. As always the competitive factors start churning and the difference of 6.2 percent means that a company that pays the tax on workers will now have another extra competitive factor to consider.
In most businesses, it takes about $250, 000 in revenues to pay a single worker $25,000 a year and $500,000 in revenues to pay a single worker about $50,000. After all is said and done most businesses end up with about the same percentage in net profit. These days, making a 7 percent net profit is a success story. Therefore the exemption of 6.2 percent and a $1,000 tax credit represents a crucial confrontation about making it or not making it as a business. Those who remain loyal to their workers need to find a way to compete against others who enjoy the 6.2 percent exemption money.
Senator Voinovich and the new Senator Scott Brown - both Republicans -
are backing this Democrat plan. Senator Voinovich has tried to keep government bugets sound all his life but usually only ended up being a care taker politician who supported Free Trade from the beginning. Factories and production were moved out of Ohio and the USA based on the overhead of the payroll tax for years and he did nothing about it. Senator Scott Brown was elected with Tea Party support but to my knowlege, he is a Free Trader like Sarah Palin is and Free Trade and Globalization are the major cause of our economic crisis.
The new plan seems to be just another shell game to protect Free Traders. It most likely will cost more jobs and it creates.
A whole new demension has to be sought out in order to save our economy. Old economic models from the past must be restored. We are at a vantage point where we can easily abstract the bad from the good from older economic models that worked much better than what we have. And the notion we have to compete in a global economic arena is an illusion created by the Free Traders.
The first thing Congress should do is to ask what when why and how questions about the Trade Deficits that have broken records for more than 15 years. And the payroll tax was a terrible overhead for companies in the USA to absorb when others in far away places did not have to. See Tea Party may be brewing the wrong tea
Search under - who can untangle the terror globalization and free trade have bred by tapajna and see......
Human nature is challenged by IRS plane crash
America is in Terror too. An unemployed software worker becomes a suicide bomb.
New bill to create jobs will take jobs away too.
In the new job stimulus bill, employers would be exempt from paying their part of the Social Security payroll tax amounting to 6.2 percent to hire workers who have been unemployed for 60 days or more. The plan also provides an additional $1,000 tax credit for workers retained for at least a year. Cost to taxpayers would be $1.3 billion dollars. Another $57.3 billion would be for highway projects, equipment write-offs and Build America Bonds in the same old trickle down economy by big government now instead of President Reagan private sector way. The trickle never gets down to the workers or small businesses.
This again is putting the cart before the horse economics - See Obama's cart before the horse economy.
However, the payroll tax is finally identified as a terrible overhead for companies in the USA and that the payroll tax is actually a flat tax on the working poor. But, applying an exemption to new hires will also be a negative in keeping other workers who have jobs. As always the competitive factors start churning and the difference of 6.2 percent means that a company that pays the tax on workers will now have another extra competitive factor to consider.
In most businesses, it takes about $250, 000 in revenues to pay a single worker $25,000 a year and $500,000 in revenues to pay a single worker about $50,000. After all is said and done most businesses end up with about the same percentage in net profit. These days, making a 7 percent net profit is a success story. Therefore the exemption of 6.2 percent and a $1,000 tax credit represents a crucial confrontation about making it or not making it as a business. Those who remain loyal to their workers need to find a way to compete against others who enjoy the 6.2 percent exemption money.
Senator Voinovich and the new Senator Scott Brown - both Republicans -
are backing this Democrat plan. Senator Voinovich has tried to keep government bugets sound all his life but usually only ended up being a care taker politician who supported Free Trade from the beginning. Factories and production were moved out of Ohio and the USA based on the overhead of the payroll tax for years and he did nothing about it. Senator Scott Brown was elected with Tea Party support but to my knowlege, he is a Free Trader like Sarah Palin is and Free Trade and Globalization are the major cause of our economic crisis.
The new plan seems to be just another shell game to protect Free Traders. It most likely will cost more jobs and it creates.
A whole new demension has to be sought out in order to save our economy. Old economic models from the past must be restored. We are at a vantage point where we can easily abstract the bad from the good from older economic models that worked much better than what we have. And the notion we have to compete in a global economic arena is an illusion created by the Free Traders.
The first thing Congress should do is to ask what when why and how questions about the Trade Deficits that have broken records for more than 15 years. And the payroll tax was a terrible overhead for companies in the USA to absorb when others in far away places did not have to. See Tea Party may be brewing the wrong tea
Search under - who can untangle the terror globalization and free trade have bred by tapajna and see......
Human nature is challenged by IRS plane crash
America is in Terror too. An unemployed software worker becomes a suicide bomb.
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