The new “Jobs Bill” appears to be as much a “smoke and mirrors” levy for more slush fund cash as the previous TARP and other bailouts.
The Government seems to have the opionion of itself that they CAN push on a rope. That just by the act of declaring more jobs will be created that they WILL be created.
According to the article:
The bipartisan Senate plan would exempt businesses from paying a 6.2 percent Social Security tax on the wages of new employees, as long as the workers have been unemployed at least 60 days. The tax break would run through the end of the year.
A company could save a maximum of $6,621 if it hired an unemployed worker after the bill is enacted and paid that worker at least $106,800 — the maximum amount of wages subject to Social Security taxes — by the end of the year. The company could get an additional $1,000 on its 2011 tax return if it kept the new worker for at least a full year.
This is only for new hires.
If any one of those leaders proposing, drafting or promoting this bill had even the simplest experience in turning a profit. If they had owned even the smallest business, even a lemonade stand, they would realize that paying $106K to an employee which is not needed for a $6K tax savings is a losing proposition.
Unlike the activities of a government, you cannot have a negative $100K and expect to stay in business.
It is simple math fellas. $106K out, $6K savings on tax (which is really on e $2K in the pocket) does not make for a robust business model.
What this bill does do, is to put another $80B in the hands of the politicians. More money to do with what they please.
Do we, as Americans really need to be putting more of our hard earned tax money in their “Rainy Day Fund”?
I think not.
I would hope that someone will recall that “you can lead a horse to water, but you cannot make him drink”. Giving this morsel of an incentive will not compel a business, no matter how large or small, to hire without need.