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Payroll tax holiday - why only now?





deanhills
Why could the a payroll tax holiday not have been implemented at the beginning of 2009 when the bailouts had been approved? Obviously that was when it had been needed the most. Although one probably should be thankful that it may now be in the process of happening at last. The $20 billion however is much less than the 1.2 trillion that the Banks got. Priorities are obviously very different.
Quote:
Companies that hire unemployed workers get a temporary payroll tax holiday under a bill headed for likely Senate passage Wednesday.

A positive vote would send the legislation to the White House for President Barack Obama's signature.

It would be the first of several election-year jobs bills promised by Democrats to be enacted into law, though there's plenty of skepticism that the measure will do much to boost hiring.

The bill contains about $18 billion in tax breaks and a $20 billion infusion of cash into highway and transit programs. It would exempt businesses that hire the unemployed from paying the 6.2 percent Social Security payroll tax through December and give employers an additional $1,000 credit if new workers stay on the job a full year. Taxpayers would reimburse Social Security for the lost revenue.

Source: YahooNews!
SonLight
I don't know if their judgment and timing is good. In fact, I'm sure that electoral politics is the primary reason for the measure. On the other hand, we did have a lot of stimulus last year at the expense of future taxpayers, so maybe it wouldn't have been a good idea at that time. As the original stimulus package winds down, it would make sense to monitor the situation and do a little more.

Whether this will help workers or not, it will surely please the companies who get the benefit, and gain political points for the democratic agenda among many workers who want the government to "do something" -- even if it's a bad thing to do.
Afaceinthematrix
I heard this on the radio a week or so ago and I began shouting obscenities. This is the stupidest bill that I have ever heard. Obviously, the idea is to try and get unemployed people employed. But this doesn't actually do that... Why?

Well first off, there are still the exact same amount of jobs as there were before. So if I, someone with a job, apply for a new job and I get it, then I go to that job and leave my current job (assuming I'm not going to work two jobs), then my old job is now available for someone else to get. It leaves the exact same amount of people unemployed because there are the same amount of jobs!

So what does this bill actually do? Well it encourages companies to hire unemployed workers. So instead of giving the job to the best qualified candidate, the job is given to the best qualified unemployed candidate. This makes it harder to move on up to bigger and better jobs.

So what is the point of this bill? Am I missing something?
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