I was trying to find a current event to blog about and I came across this very interesting article on nytimes.com. Apparently the government is debating about whether or not a tax credit should be given to companies who create new jobs. This is would be an updated version of a proposal created in 1977. I don't totally understand how this would work, but what I got from the article is that the policy created would make it cheaper for companies to hire more workers and that the government "would give employers a two-year tax credit if they increased the size of their workforce or added significant hours of working (for example, making a part-time worker full time.)
I personally think that this whole concept/idea/proposal would probably be a good idea, just as long as employers did not take advantage of it (a concerned expressed in the article). I think that if this policy could be pulled off then it would help the unemployment rate to go down, businesses to make more money, and for our economy to improve and not to be such crap. I am very sorry if I did a horrible job explaining this. I believe if you click on the title of this post it will take you to the article if you are interesting in reading it.
Tuesday, October 6, 2009
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4 comments:
First of all, your explanation is great. Just thought it should be said.
I find this proposal interesting but am skeptical of how it would be carried out. The idea has merit, but rushing to put this program in place seems like it would create more problems than it would solve. It is definitely the kind of idea that it would have been great to have had in place earlier (as Phelps says) but more thought processes are required to put programs out with the current state of the economy.
Personally, I think that companies (depending on how much they receive from those benefits) would utilize it to make the most profit. So if companies don't make more on such a program, then they won't implement it. ;(.
This might even cause companies to pay their workers less (assuming the workers are paid above minimum wage). This proposal has the right idea though.
I was thinking of taxing the wealthy companies that have less workers. Wondering how that idea would turn out?
thanks for your comments!
I definitely agree with Lily. This is a very creative idea that would help create jobs, but a company will have very little incentive to hire if there are no jobs that need to be filled. And if those jobs do not benefit the company enough, the company could possible end up losing profit. But this is all a little hypothetical. It is good to hear that there are new concepts and ideas that will possibly help this recession.
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