Tran Harry – The Economy Needs A Fix

Instead of extending the unemployment benefits to well beyond a year, why doesn’t the government enact some sort of law which assist in hiring more people and putting them to work?

If for example a company is a $1 million a year company and they decide to go from 5 employees to 7 than they have just increased their work force by 40% and in turn should be rewarded with a tax break of say 2-5%. It might not equalize on the balance sheets of companies but it does induce some sort of hiring and the added assets to the company would play out for future productivity.

Adversely the government would end up having a net wash, because while this means they’ll collect less in business tax revenues, they won’t have to doll out as much in unemployment benefits as more people will work saving them in cost. As more people start working again, the government will see an increase in revenue driven through increases in the amount of income tax collected.

Ask the average unemployed person here would they rather sit at home pulling in 25% of their previous earnings or given a chance to work again I’m sure a good fraction of them would love to be back in the workforce. The rest I would go out on a limb and say they may be trying to milk the system but they probably would find a way to milk it regardless.