The Obama administration released details on their tax cut for businesses which hire and increase wages.
Get what is missing? Tying the tax cut to U.S. citizens, LPR. This means there are no restrictions on offshore outsourcing of jobs or displacing more Americans using guest worker Visas, a notorious practice using H-1B, L-1 and H-2B Visas.
There is no mention of ensuring that employee exists on U.S. soil or is a U.S. citizen, green card holder. There is no mention of stopping the use of the tax cuts when importing more foreign guest workers. Currently we literally have story after story of employers importing even more foreign guest workers with this kind of dire jobs situation. Just the other day a grocery, literally imported foreign guest workers on H-2B Visas for jobs while the town has people going homeless and an official 14% unemployment rate.
When, when, WHEN will people get economic reality that the United States cannot be the world's job market. No, we really can't and if 1 in 6 Americans cannot get a decent job doesn't tell ya that fact, you must be smokin' crack. Keep smokin' it, for hallucinating is the only way you'll see labor demand curves slope upward.
Here are the details of the plan:
- Businesses will receive a $5,000 tax credit for every net new employee that they employ in 2010. The total amount of the credit for any one firm will be capped at $500,000, to ensure that the majority of the benefit is targeted at small businesses. Start –ups will be eligible for half of the tax credit.
- Small businesses that increase wages or hours for their existing employees will be reimbursed for the Social Security payroll taxes they pay on real increases in their payrolls. This bonus would be based on Social Security payrolls, so it would not apply to wage increases above the current taxable maximum of $106,800.
- Firms will be able to claim the credit on a quarterly basis, which gets money out to businesses quickly and provides and early incentive to hire and increase payrolls.
The plan is expected to cost $33 billion dollars.
Here is the CBO estimates on most bang for the buck. Now this payroll tax holiday looks like a great idea but guess what the CBO does not consider, globalization. They do not take into account U.S. taxpayer dollars being used to create jobs....for citizens of other nations.
This is a real problem! If you do not believe me, just look at the overall growth in labor force and the overall decrease in the number of U.S. based jobs.....and....our friendly neighborhood unemployment rate. Also bear in mind the BLS counts guest workers in occupational employment rate estimates.
This is not your plain vanilla private enterprise situation here. This is U.S. taxpayers money, U.S. debt and a temporary program to get Americans back to work.
Please do not let this administration enact another policy that literally is a money sieve, pouring out to other nations instead of America.