Wednesday, September 7, 2011

The Long Term Job Solution

The problem that America has with lack of jobs needs both a short term and a long term solution.  Below is the long term solution that Barry should propose tomorrow night.  He won't.  He's part of the problem and seems to have no vision for the future of America.

The Job Solution - Long Term

Stop taxing jobs. That means no more taxes paid on employment income for Social Security, Medicare, unemployment benefits or any other direct or indirect tax on jobs. This will lower the cost of hiring people significantly.

Eliminate the connection between health care and jobs. Tying health care to a job is a Faustian bargain: one loses a job and health care and the same time – horribly risky for people. Those silver chains both increases the cost of employment enormously and prevents people from moving to either better jobs or starting their own businesses.

Social Security, Medicare, all other job taxes AND a new National Shared Heath Care Benefit should be funded by a new Value-added or Sales tax on goods (especially imported goods) and many services (especially imported services). Consumers of imported goods and services now get a free ride. Nothing embedded in the value of imported goods & services helps fund the government or provides benefits to American workers. Shifting the funding for all those programs will make consumers of imports pay a fair share to support the New American System. See The Tax Solution for more details. In this New American System, cost of employing Americans in America will be far, far less.

Eliminate all tax subsidies for equipment and machinery (accelerated depreciation, etc.). Eliminate all overseas income tax loopholes. In the New American System, the plain American people are preferred over machines or foreign labor.

Eliminate tax deductions for any compensation above the salary of the President of the United States. Why the President’s salary? We have to draw the line somewhere and that’s a highly recognizable, bright line all can see. That change will lower the costs of employing many people at middle income wages/salaries vs. an executive suite or princely contractors. Eliminate tax loopholes for billionaire money managers.

Require any corporation wishing to bring in immigrants for so-called "hard to fill" jobs first offer the job broadly at a 10% pay increase AND offer job training for any special requirements; provide an arbitration board to protect against unfair or excessively tailored job descriptions.

Eliminate all Federal & State regulations that kick in at some number of jobs, like 50. Those hold down the number of jobs and encourage using high paid employees supported by machines, vs. simple jobs for more people.

Eliminate the R&D tax credit and replace it with a Job Training credit: US companies get the credit for the costs of training workers whom they hire with skills needed for the jobs; if the new hires are laid off within five years, the credit should be recaptured.

The new value-Added Tax will apply to services, too, thus forcing those using foreign labor or foreign contracts services to pay the tax for the retirement and health care benefits for Americans.

All these policies will lower the cost of hiring plain people in America and increase the demand for people vs. machines. And it frees the entrepreneurial energy of millions of people chained to dead end jobs by "benefits". Entrepreneurs will be more free to hire people as hiring becomes simple and direct, with no red tape. The cost of replacing people with machines goes up. By equating the W-2 worker with the 1099 worker, employers will want to hire more people to lock in their services; there will be NO benefit to keeping people on 1099 contracts.

Word of the Day

"Fard" - noun, verb, transitive [$100] Archaic.
Fard means (noun) facial cosmetics; (verb) to apply cosmetics to (the face).
Sentence:  Will Barry offer new ideas?  Nope, he's going to fard the hogs at the trough.


Bunkerman said...

The disgrace that is Bank of America continues. They want to continue to suck up a huge share of the public's deposits, yet now seem to signal they don't give a crap for the people re banking.

That CEO should have been fired. too.

Spin-em said...

"Bob' says he will always consider me...a friend

what a guuuy... sure is mighty white of him


Thank you for being a friend
Traveled down the road and back again
Your heart is true your a pal and a confidant.
And if you threw a party
Invited everyone you ever knew
You would see the biggest gift would be from me
And the card attached would say... thank you for being a friend

baba bum... bumm... bumm...bmmmmmmm

Bud said...

Bman are you buyin any European stocks these days ?? DAX is down 25% this summer

Bud said...

Bman is crude oil an assett class ??

Bunkerman said...

I bought stocks (including Europe) at this level a few weeks ago.

Krypto's model has no buy signals at this time.

Bunkerman said...

oil in the ground is an asset class; oil futures and derivatives are not.

The only way to own oil in the ground today is to buy oil stocsk which have much reserves.

I think one gets a good bit of that simply buy owning the total market stock index fund (or the VTI ETF)

Bunkerman said...

Today's word of the day was a special one ... can make a yokel sound like Shakespeare.

btw, pronounce the "d' distinctly, or ...