It Costs A lot to Hire People, Mr. President

September 28, 2011

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The President thinks a small tax credit and an employee FICA holiday along with “if you don’t hire the unemployed I’ll…” threats will entice small business owners to immediately hire folks.

It’s going to take a bit more than threats, Mr. President.

It’s going to take a turnaround in the economy and growth before employers make the offer. There’s got to be a long term upside to the hire. Because look at that chart over there. It says it costs roughly $58K to hire an employee and that excludes training costs! That’s an average cost including the big and little boys.

As precious metals mogul Peter Schiff recently told a Congressional  …

Committee, hiring a person is the riskiest thing an employer can do. In the same testimony he also averred that he’d been FINED FOR HIRING TOO MANY PEOPLE. See his testimony (featured recently on my show) nearby.

Here’s what the President’s “jobs” plan supposedly will do in part (source here):

It cuts the payroll tax for workers in half, which amounts to a $175 billion tax break, and cuts it in half for businesses until they reach the $5 million mark on their payrolls, at a cost of $65 billion. The idea there is to target the tax cut to struggling small businesses, rather than the cash-rich large businesses. It also extends the credit allowing businesses to expense 100 percent of their investments through 2012, which the White House predicts will cost $5 billion.

Instead of picking winners and losers, the President should reduce the taxes for all companies and stand back. His targeted favors to certain business and jobs plans will just distort those areas of the economy.

He likes green and organic stuff, right? Let the economy grow where it will and there will be plenty of green for everybody. It sure beats what’s going on now.

Tell ’em where you saw it. Http://www.victoriataft.com