Unfortunately the stimulus bill isn’t working as promised. They say we have created 150,000 jobs but for $787 billion that’s $5 million a job. And, just when you thought the recession was nearing an end, the U.S. unemployment rate moved up from 9.4 to 9.5 percent.
I think what we need to do if we really want to stimulate jobs is offer all businesses a tax credit for hiring now. For example if you hire someone now and that person is still on your payroll January 31, 2010 you get a tax credit. You could play with the numbers but let’s just say $7,500 or maybe 10% of the total salary paid. I believe this would stimulate hiring and not cost much.
Does this make sense to you?
Someone once said “Congress believes it has infinite knowledge – but it doesn’t know very much.” “Patience,” says the government, only 10% of the stimulus dollars have been spent and, well yes the fact is that June is often a weak jobs month. Also the new unemployment numbers are nudged lower slightly by the planned firing of about 50,000 temporary workers who were preparing for the census.
What next for our economy? The job market? Stay tuned. I have lots of facts and figures for you next issue.
Joseph Michaels, Inc. has just been retained by a leading Silicon Valley corporation to find a Sr. Tax Manager. Resumes, referrals, ideas to: email@example.com