User avatar
OzarkD9S
Topic Author
Posts: 4837
Joined: Tue Oct 23, 2001 2:31 am

My Stimulus Idea...And Yours.

Thu Jul 09, 2009 9:57 pm

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?
As the masters write on walls and the angels eat their grapes, I watched Picasso visit The Planet of The Apes. - Adam and The Ants.
 
User avatar
Dreadnought
Posts: 10078
Joined: Tue Feb 19, 2008 6:31 pm

RE: My Stimulus Idea...And Yours.

Thu Jul 09, 2009 11:47 pm



Quoting OzarkD9S (Thread starter):
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.

I'm an economist so I'll chime in.  Wink

I like the way you are thinking, in that the way to increase employment is to make it less costly for employers to hire (by reducing the tax implications).

The problem in your approach is that it is complicated. The IRS is going to have to try to track your employees and determine their exact hiring date, the appropriate rebate, etc. etc. for millions of businesses (and increase their headcount to cope). You are not alone - We all like to create neat little programs that encentivise some specific activity. But that is the reason why we have a tax code that is 100,000 pages long and growing.

I prefer to eliminate 99,998 of those pages and give a simple tax code. Eg. Businesses will pay 20% of net entity income after deduction of operating expenses, depreciation and amortization according to GAAP rules. Losses carried forward can be retained for 5 years.

There you go - I've just rewritten all the business tax law we need in 2 sentences. Might need a few more sentences, but you get the idea - Get rid of all the loopholes. Make it simple, with a low rate.

Of course such a simple tax law would put about 100,000 tax accountants and tax lawyers out of work, but I think that is a small price to pay for the ability of all businesses, from GE down to the local donut shop to calculate their taxes on the side of a paper napkin. THAT will encourage employment and investment.

For a temporary stimulus, temporarily repeal all payroll taxes and income taxes for a couple of quarters. The effect will be immediate and easy.

By the way, Obama has found another source of Stimulus Big grin Wait till Michelle sees this.

Big version: Width: 610 Height: 521 File size: 93kb
You have enemies? Good. That means you've stood up for something, sometime in your life. - W. Churchill
 
User avatar
OzarkD9S
Topic Author
Posts: 4837
Joined: Tue Oct 23, 2001 2:31 am

RE: My Stimulus Idea...And Yours.

Fri Jul 10, 2009 12:12 am

Shall we run in 2012? Dreadnought/Ozark!?
As the masters write on walls and the angels eat their grapes, I watched Picasso visit The Planet of The Apes. - Adam and The Ants.
 
User avatar
DocLightning
Posts: 20253
Joined: Wed Nov 16, 2005 8:51 am

RE: My Stimulus Idea...And Yours.

Fri Jul 10, 2009 12:13 am



Quoting Dreadnought (Reply 1):

For a temporary stimulus, temporarily repeal all payroll taxes and income taxes for a couple of quarters. The effect will be immediate and easy.

And what do you run the government with?

Quoting Dreadnought (Reply 1):


By the way, Obama has found another source of Stimulus Big grin Wait till Michelle sees this.

You're a naughty boy, Dreadnaught.  no   Wink
-Doc Lightning-

"The sky calls to us. If we do not destroy ourselves, we will one day venture to the stars."
-Carl Sagan
 
User avatar
OzarkD9S
Topic Author
Posts: 4837
Joined: Tue Oct 23, 2001 2:31 am

RE: My Stimulus Idea...And Yours.

Fri Jul 10, 2009 12:16 am



Quoting DocLightning (Reply 3):


And what do you run the government with?

Legalize pot. And tax it.
As the masters write on walls and the angels eat their grapes, I watched Picasso visit The Planet of The Apes. - Adam and The Ants.
 
Phoenix9
Posts: 2045
Joined: Tue Aug 28, 2007 8:25 pm

RE: My Stimulus Idea...And Yours.

Fri Jul 10, 2009 12:20 am



Quoting Dreadnought (Reply 1):
By the way, Obama has found another source of Stimulus Wait till Michelle sees this

Big version: Width: 399 Height: 422 File size: 55kb



- Signed

Obama
Life only makes sense when you look at it backwards.
 
User avatar
Dreadnought
Posts: 10078
Joined: Tue Feb 19, 2008 6:31 pm

RE: My Stimulus Idea...And Yours.

Fri Jul 10, 2009 12:25 am

Quoting DocLightning (Reply 3):
And what do you run the government with?

Eliminating 100% of all the items below for 6 months would cost (based on latest GPO estimates):

Corporate Taxes: $73 billion
Social Security Payroll Taxes: $449 billion

http://www.gpoaccess.gov/usbudget/fy10/hist.html

This would be cheaper and far more effective than the boondoggles passed by Congress which have proven to be worthless as stimulus.

Edit: I find it stunning to hear an Obama supporter complain about "How would the government pay for that?"

[Edited 2009-07-09 17:29:36]
You have enemies? Good. That means you've stood up for something, sometime in your life. - W. Churchill
 
texan
Posts: 4063
Joined: Tue Dec 23, 2003 2:23 am

RE: My Stimulus Idea...And Yours.

Fri Jul 10, 2009 2:03 am

Six-month technology tax break (or credit, although a temporary tax break would work better). Businesses investing in new technology, as defined in a particular way, over a six-month time frame pay no taxes on that technology. Maybe couple that with accelerated depreciation on some items. Redirect stimulus money to projects that have a greater chance of creating jobs (although, to be fair, it will take up to a couple of years to see any true change from the stimulus package. I still think the stimulus money should have been more concentrated toward job creation, though).

Texan
"I have always imagined that Paradise will be a kind of library."

Who is online

Users browsing this forum: B777LRF, Bing [Bot], einsteinboricua and 1 guest

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos