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> I wish every small business could be paid to create jobs. I always thought tax credits for businesses were more related to numbers rackets than to actual eco
by bb88 9y ago
> I wish every small business could be paid to create jobs.
I always thought tax credits for businesses were more related to numbers rackets than to actual economic gain.
Here's a thought experiment:
I take one person from my company, fire him, and split the job into two people. Both get paid less than half of the original guy I fired. Yet one of the keeps the old title. Did I create a job? Yes. Did I grow the economy? Doubtful.
While splitting one job into two seems far fetched, it's not that far fetched to split 8 jobs into 10, say.
- masklinn 9y ago> Did I create a job? Yes. Did I grow the economy? Doubtful. Probably depends on the salary range(s) involved and how deep into "mostly discretionary income" the original employee was (and, I guess, how much they spent v stashed that discretionary income).
- lr4444lr 9y agoActually, you arguably shrank it if the new lower salaries both render the receivers eligible for a greater share of public benefits while subjecting them to lower marginal tax rates.
- bb88 9y agoYeah that's a good point, but that also means there's more rent being paid, more food being bought. So it's probably at best a wash.
- coolaliasbro 9y ago> I always thought tax credits for businesses were more related to numbers rackets than to actual economic gain. Agreed. And when the businesses receiving these credits are primarily "creating" low-paying service sector positions, the picture is even more bleak.