Mr Khan said:
What is your opinion on the payroll tax holiday? I suppose its futile by its own nature, because you're not going to hire people if you know they're going to immediately become more expensive to pay for. |
Exactly. I'm sure some hiring might happen, but mostly only for short term projects with the intention of letting people go when the deal expires.
What's the point of hiring someone because they are cheaper now, only if they are going to become more expensive in like... a year... and you probably don't have excess demand anyway.
Now maybe something like a bigger 4-5 year payroll tax cut ONLY for buisnesses establishsed within the last 2 years or just being created could be good. If you found a way to stop loopholes. If I remember right you could actually just abolish them for the first 4-5 years and it'd cost less then this cut.
That way it'd mostly be jobs that had a good chance of sticking around, should they find new value in the market. (which is something that does actually grow the economy.) It'd basically create a HUGE incentive for the creation of jobs, rather then a weak incentive that goes to everyone working.
It would even give new companies added advantages over older companies since equal pay will pay them more, and a lot more at that... and i'd imagine after 4 years of being somehwere, the idea of your pay being cut quite a bit wouldn't feel great, so a lot of people who prove themselves valuable can get themselves a bump in their salaries to offset it.
This is essentially our jobs issue. Blame regulations, or coproations, tax hungy politicians or the dot com bubble, but the last 10 year or so it's been WAY harder to start your own buisness, and espiecally become an IPO....
and I've found out that's where all the job creation comes from. (Which is why my opionion on the matter has changed in the last few months.)








