First off, I'm no economist, and if you have 10 economists in a room they will probably give you 10 different suggestions on how to stimulate the American economy.
The past year has seen the American economy shed hundreds of thousands of jobs, thus decreasing the government's tax income as well as taking billions of potential dollars out of the general economy.
So I have an idea to help stimulate the basic need of jobs for people that want them. Tell me what you think.
For every full time (let's for argument's sake say 32-40 hours a week guaranteed to the new hire or a current part-time worker bumped up to that level) that the Feds "kick back" a descending percentage of that employee's federal taxes to the employer over a 10 year period either in direct cash or a tax credit.
Year 1: Fed kicks back 10% to employer
Year 2: Fed kicks back 9%
Etc for a total of 10 years.
Employee's hired under the program may not be fired or laid off for the duration of the program except for direct violations of company policy (theft, excessive absences etc...) or if in a union protected environment, seniority issues come into play. Nor can the employee be terminated after the program and rehired by same company to start the kick back scheme all over again.
Existing employees of companies are "grandfathered in" at say a 2% kick back level until they leave the company or retired.
To help offset the temporary loss of government revenue, a 2% national "employment sales tax" is instituted with the funds mandated to help partially cover the cost of the program. Increased overall employment and increased consumer spending as a result help boost the overall economy.
Any thoughts on this scheme?