Spurring Employment With a New Tax Break for HiringPosted: May 13, 2011
A lot is being made about the tax breaks (credits if you will) for the Big 5 oil companies, and numerous other companies which, while making record profits and while holding a record amount of cash, pay little or no tax, and are not really hiring at a rate anywhere near what is needed to pull the middle class worker out of the recession. While Wall Street continues to rake in cash, Main Street and the under and unemployed are still suffering.
One tool advanced to some of our finest in Congress by this author and no doubt, numerous others, is a bill that would allow special write offs over a period of years for hiring or re-hiring at decent wages– good old, hard working American workers. If business could essentially ‘depreciate’ workers by writing down the expense of employing them (with appropriate safeguards to ensure continued employment of same), it might spark an uptick in hiring that would actually put the US economy back on track again. This would have to be at a level well above what has been contemplated by Congress in order for business to really respond! A bonus level could be built in for bringing jobs previously outsourced overseas back to the US.
It has been noted repeatedly, but is worth pointing out again that our economy is heavily dependent on consumer spending in order to really hum along. The best way to increase consumer spending is for more consumers to be gainfully employed at a living wage. Henry Ford got this concept, and put his money where his mouth was years ago, and it paid off handsomely.
So, Congress…how about it?