Tax Cuts: Unintended Consequences?

[bpr]

We all know how heavily the short-term census workers figured in the recent unemployment statistics.

Now we're seeing the residual effects of this:

The payroll tax exemption provides employers with an exemption from the employer’s 6.2 percent share of social security tax on wages paid to qualifying employees, effective for wages paid from March 19, 2010 through December 31, 2010.

HIRE Act

My low-skilled-but-employed friends in a very economically depressed part of the country are starting to see their hours cut to make way for new hires so that their employers can benefit from this tax cut.

Bottom line is, long-term workers in "unskilled" positions (retail, food service) are no longer able to meet their obligations.

Yeah, this is going to help recover asset prices, when renters start moving in with their parents.


Bottom line: tax cuts to industry do not "trickle down."

[chr5648]

Re: Tax Cuts: Unintended Consequences?

We all know how heavily the short-term census workers figured in the recent unemployment statistics.

Now we're seeing the residual effects of this:



HIRE Act

My low-skilled-but-employed friends in a very economically depressed part of the country are starting to see their hours cut to make way for new hires so that their employers can benefit from this tax cut.

Bottom line is, long-term workers in "unskilled" positions (retail, food service) are no longer able to meet their obligations.

Yeah, this is going to help recover asset prices, when renters start moving in with their parents.


Bottom line: tax cuts to industry do not "trickle down."

Theres a stipulation that says you can't have worked 40 hours in the 30 days before employment, I know of someone who was denied a position because they had worked 40 hours and the company would not have received the 'tax cut'.

[c1ue]

Re: Tax Cuts: Unintended Consequences?

There's also a number of programs which can provide subsidies for up to 80% of wages (at minimum wage level) for new hires.

I'm looking into this now to understand if this applies for the short term work I need (Census like, but more specific). For example, in the past these requirements were for employees that were kept on for 18 months, etc etc.

If these types of (reasonable) restrictions are removed, then this payroll exemption be a bonus on top of that.

[Ghent12]

Re: Tax Cuts: Unintended Consequences?

Theres a stipulation that says you can't have worked 40 hours in the 30 days before employment, I know of someone who was denied a position because they had worked 40 hours and the company would not have received the 'tax cut'.

Sounds like a perfectly legitimate reason to be against so-called "targeted tax cuts," but to say that tax cuts in general are a bad thing for employers and employees alike is not something you could conclude from this scenario.

[don]

Re: Tax Cuts: Unintended Consequences?

bpr:

I think you are being generous framing your thread as Unintended Consequences?

This act is a 100% political decision, not an economic stimulus, as your documentation suggests.