Full employment could fairly easily be accomplished with the correct tax cut. A tax cut targeted directly to employment should do the trick.
I can't see why anyone would be against this nor why it would not work ... comments?
Full employment could fairly easily be accomplished with the correct tax cut. Correct meaning it must work, and enough congress people must vote for it to get it passsed. I have a simple one page bill that does the trick:
I suggest a simple tax cut for business -- allow a 125% tax deduction to the employer (rather than the normal 100%) on the total compensation of any qualified employee. A qualified employee would be anyone living, working, paying taxes in the USA and having a total compensation of 100k or less (on a full time equivalent basis).
This is very simple. A one page bill. It will help small business and corporations alike -- but most importantly, only in direct proportion to how many middle and lower class people they hire. Nobody can argue that the tax cut is going anyplace except to those that provide jobs, the more jobs the more the tax break is. If you calculate the actual savings for the additional 25% deduction, the benefit is approximately 10% ... which is easy to explain given the 10% unemployment ... and explains how this could lead to full employment.
How can those that normally don't like tax cuts argue against a tax cut for employing people? Directly. How can those that like tax cuts argue against targeting unemployment only, rather than the broader tax cuts the right always propose?
And, this will make American labor more competative -- both against other countries and against machines. When the cost of labor in this country goes down relative to other countries, we get jobs. When the cost of labor is lower, people are not replaced by machines.
My guess is that it will actually increase treasury revenue. The 10% unemployed would stop drawing benefits and instead begin paying taxes ... and growth feeds on itself. As more people work, more demand for product, which needs more work ...
I can't see why anyone would be against this nor why it would not work ... comments?