This part of the President’s new jobs (stimulus) plan is pretty easy to figure out. By halving the employer’s payroll tax rate, an employer will need to have more than 32 employee to generate enough tax savings to directly create a job.
Most small business owners I know hire fewer than 25, so the savings will not help them hire additional staff on their own.
Of course, small business job creation isn’t the intent of this bill. While the state-by-state announcements of its benefits mention the number of firms who may benefit from the payroll tax plan, the meat of the legislation is intended to dole big bucks for big government projects and get as many people as possible “employed” temporarily in key battleground states in time for next year’s election.
Of course, the proposed payroll tax cut is only further proof that “social security” has become little more than a political piggy bank.
- squintworks posted this