Newsday had a story about one of Obama's attempts at a jobs programs a while back. The program gives businesses $1,000 (tax credit) to hire an employee that has been out of work for one year and exempts them from paying the 6.2% SS tax until the end of the year.
Obama and his economic wizards are proud of it and really think that it is working.
Suppose I hire an employee I don’t need for $50,000. I get $1,000 tax credit which is good. Now I am in the hole only $49,000 for hiring the guy I don’t need. And the Social Security waiver means I don’t have to pay 6.2% of his salary $3,500 to the government in social security tax. This is not money I get for hiring the guy I don't need; just money I don’t have to pay for an employee I don’t need.
I do have to pay the guy's health care and other benefits. And next year I have to pay more in Health care expenses for the guy I don’t need.
Incredibly, Obama borrowed the money from China in order to do this. A loan he will eventually raise taxes to pay back - assuming he is still in his current seat.
So, for hiring the guy I don't need I get $1,000 which don't cover the cost of his additional benefits.
The economic wizards of the administration believe that this plan will encourage businesses to hire people they don't need. These people are running the country!!!!We are doomed.