Some economic indicators are turning around, but employment levels continue to lag. Josh Bivens of the Economic Policy Institute discusses the proposal to incentivize hiring with tax credits for business owners.
So many people become "independent contractors," or marginally employed, after being fired--will there ever be a tax credit for *that* form of "job creation"?
Oct. 07 2009 11:24 AM
Score: 0/0
Caitlin
from Jersey City
Will this be applied equally to large and small companies, and full-time and part-time employees? (I hope it helps, I just lost my job yesterday!)
Oct. 07 2009 11:20 AM
Score: 0/0
Matthew
from Brooklyn
This is fairly idiotic. A program to provide an incentive for a company to hire someone they don't need in a bad economy?
I have a revolutionary idea. Why doesn't the government lower income tax drastically, then people with jobs will spend more money and thereby create a need for new actual jobs. Then the government won't have to give us our own money back for hiring someone we don't need.
Oct. 07 2009 11:20 AM
Score: 0/0
oil monkey
As a small business owner it is demand for the product/service we produce that dictates whether we hire more employees or not. Sure, it would be nice to get the tax credit, but if there isn't the work that needs to be done, we're not going to hire.
Oct. 07 2009 11:11 AM
Score: 0/0
George
from NJ
Dean Baker, economist, says:
"October 06, 2009 The Easy Way to Game the New Hire Tax Credit: Hire Your Contractors
The NYT reported on discussions in the Obama administration to implement a tax credit of $3,000 for companies that hire additional workers. The hope of course is that this will be a spur to job growth.
Most studies show that labor demand is highly inelastic (this is why increases in the minimum wage have little effect on employment), so a tax credit that modestly decreases the cost of labor is unlikely to have much effect on employment. On the other hand, there would be many opportunities for employers to game this tax credit.
The most obvious is simply bringing some jobs on payroll that are currently contracted out. For example, if a company currently contracts out its custodial services it can instead hire people on its payroll to do this work and get the $3,000 tax credit. This would lead to no net gain in jobs. It would have been helpful if this piece had included some analysis of this tax proposal."
Oct. 07 2009 11:09 AM
Score: 0/0
Tony
from San Jose, CA
Humm, how about curbing doctors' ransom - err, I mean tax - in order to encourage hiring?
Oct. 07 2009 11:08 AM
Score: 0/0
Hugh Sansom
from Brooklyn NY
Isn't there already a tax credit for hiring workers? Employers deduct labor costs from their gross income for tax purposes.
Oct. 07 2009 11:08 AM
Score: 0/0
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Comments [7]
So many people become "independent contractors," or marginally employed, after being fired--will there ever be a tax credit for *that* form of "job creation"?
Will this be applied equally to large and small companies, and full-time and part-time employees? (I hope it helps, I just lost my job yesterday!)
This is fairly idiotic. A program to provide an incentive for a company to hire someone they don't need in a bad economy?
I have a revolutionary idea. Why doesn't the government lower income tax drastically, then people with jobs will spend more money and thereby create a need for new actual jobs. Then the government won't have to give us our own money back for hiring someone we don't need.
As a small business owner it is demand for the product/service we produce that dictates whether we hire more employees or not. Sure, it would be nice to get the tax credit, but if there isn't the work that needs to be done, we're not going to hire.
Dean Baker, economist, says:
"October 06, 2009
The Easy Way to Game the New Hire Tax Credit: Hire Your Contractors
The NYT reported on discussions in the Obama administration to implement a tax credit of $3,000 for companies that hire additional workers. The hope of course is that this will be a spur to job growth.
Most studies show that labor demand is highly inelastic (this is why increases in the minimum wage have little effect on employment), so a tax credit that modestly decreases the cost of labor is unlikely to have much effect on employment. On the other hand, there would be many opportunities for employers to game this tax credit.
The most obvious is simply bringing some jobs on payroll that are currently contracted out. For example, if a company currently contracts out its custodial services it can instead hire people on its payroll to do this work and get the $3,000 tax credit. This would lead to no net gain in jobs. It would have been helpful if this piece had included some analysis of this tax proposal."
Humm, how about curbing doctors' ransom - err, I mean tax - in order to encourage hiring?
Isn't there already a tax credit for hiring workers? Employers deduct labor costs from their gross income for tax purposes.
Leave a Comment
Register for your own account so you can vote on comments, save your favorites, and more. Learn more.
Please stay on topic, be civil, and be brief.
Email addresses are never displayed, but they are required to confirm your comments. Names are displayed with all comments. We reserve the right to edit any comments posted on this site. Please read the Comment Guidelines before posting. By leaving a comment, you agree to New York Public Radio's Privacy Policy and Terms Of Use.