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Published on January 26, 2011 By terpfan1980 In Politics

Please forgive my potential ignorance, as I'm not a business owner and thus don't have all the familiarity with all of the rules/ regulations and other issues that affect businesses day-in and day-out.  That being the case, I'd like to get some discussion (and perhaps some education) on what business owners think the federal government could really do to spur on the job market.

It seems to me that perhaps tax policy could be adjusted to move some tax burdens off the backs of businesses and onto the employees that work for them, but again perhaps I'm just woefully ill-informed in these matters.  What I'm asking about and wanting to see is that businesses need to be encouraged to hire employees and put them to work.

Providing tax breaks for educating employees and/or providing tax breaks to individuals so they can pursue technical educations and/or higher education would seem to help, but then where does all of the money that has to make up for those tax breaks come from?  Do we need to raise taxes on individuals while lowering the taxes on businesses and while offering individuals breaks if they pursue the goals of helping to advance our work force?  If so, then obviously a lot of tax payers are going to be screaming, depsite the fact that it may benefit them (and society as a whole) in the long run as once we put more people to work and expand the tax base we should -- in theory -- be able to cut taxes for everyone.

This all reminds me a bit of some co-workers I had in the past that couldn't past the "me" to see the "we" when it came to business decisions that would help our employer in the long run.  In that instance, much as we've seen with the tightening economy of the last few years, we've had people that couldn't or woudn't bear the brunt of temporary lay-offs, work furlows and the like and instead would rather see co-workers jettisoned if necessary.  Those employees always seemed to feel that their employer was being incredibly greedy and they -- the employees -- should not have to change anything or do anything at all.  No need to take paycuts, no need to work additional hours despite a fairly generous work schedule, etc.  Those greedy business people, they are the ones that need to give more, more, more.

I could continue the rant a little with some comments about the US Postal Service.  I have some work history there, and continue to feel for them as an organization.  They have serious problems with their budget and yet can't seem to get things under control because their labor pool, like teachers unions, is somewhat uncooperative and unwilling to give back, and every time the Postal Rate Commission grants a rate hike for stamps, the unions start licking their chops at the idea of getting even more money for their members all while knowing that the postal service is bleeding cash all the time.

Going back even further, I remember the Eastern Airlines situation of years and years ago.  Eastern's management were sons of .... (no, not Katy Elder) and were greedy bastages, but they warned their union members that if they walked off the job the airlines was going to go bankrupt and there would be no jobs for anyone.  The union "called their bluff" only to find out it wasn't a bluff at all.  The airline was already broke so they did declare bankruptcy and that was the end of that.  Pensions were gone.  Benefits gone.  Jobs gone.  Rather than give back some additional concessions to keep most of their jobs the union leaders refused to give in at all.  Too bad for their membership.

Anyway, enough of the ranting.  The question remains -- what can government do to encourage businesses to hire employees and further, how can they pay for whatever they do?

on Jan 26, 2011

Tax incentives to hire employees do not work unless they are permanent.  Business does not want to hire people for a year (or shorter given the recruitment time) as laying them off would then drive up their unemployment costs.  IN addition, you mention training.   And while having the government train people would help (it would move the cost from the employer) a lot of training cannot be done before hand.  it is called OJT - where even with your skills, you still have to learn the nuances of the new business (so for the first few months, very few employees are 100% productive).

The solution is not magical or mysterious.  The answer is just get out of the way of consumers and businesses and let them do what they know best.  Let the consumer keep their money, and do not try taking it from businesses so they can then use it to hire.  Other than not doing anything, the government cannot do much to help.  But the hardest thing to do (especially in today's society) is to do nothing.

on Jan 26, 2011

Get rid of the corporate tax. It's a sham tax anyway. Does anyone actually believe companies pay this? No, it winds up as in the cost of the product and passed onto the consumer. So maybe if we weren't absorbing a 40% hidden tax on everything we buy, manufacturing would increase. Why the US imposes this self-inflicted handicap on the dwindling US manufactures amazes me. No wonder no one wants our stuff.

on Jan 27, 2011

Like terpfan I know very little about business and taxes but one thing I believe I understand and what many don't understand is that rather than raising taxes to pay for something, perhaps the Gov't truly needs to stop finding things to spend money on and then create a tax to pay for it. Many don't understand that prices for everything go up all the time and that obviously taxes have to go up as well in order to keep up with price changes but there are things that the Gov't simply should not be involved in and should not be creating taxes for. As DrGuy mentioned they just need to stay out of the way.

I don't understand why people today seem to think the Gov't was created to fix everything when in reality they do more today than they were intended to do when it was first created over 200 years ago. Todays society has grown too dependent on the Gov't and this will be our downfall as we consistently put our future in the hands of people who consistently lie to us and somehow think they know whats best for us regardless what we want.

on Jan 27, 2011

Actually CharlesCS, most prices go up in response to taxes not the other way around.  Businesses don't pay taxes, they pass the expense along to the consumer.

I agree with everything else though.  

on Jan 27, 2011

Interesting, didn't really know that. thanks for letting me know about that Jill.

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