The White House released a state-by-state report on how $85 billion in automatic spending cuts will degrade programs from defense to education to public health as officials said they don’t expect to avert sequestration. | http://bloom.bg/ZtyglG
(Photo: Pete Marovich/Bloomberg)
(Photo: Pete Marovich/Bloomberg)
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- So solve the real problem. Make it profitable for companies to hire. Give incentives for hiring versus forcing employer "contributions" for hiring.Feb 26, 2013
- To clarify further, give incentives to hire in the U.S.Feb 26, 2013
- +Pamela MF Agree. Realize that businesses are just that, businesses. They exist to make a profit for their owners. They will have work done wherever it is most profitable for them to do so, and if you raise their costs beyond what a competitor from overseas can produce it for, then they will simply go out of business or move their business there. So eliminate/reduce disincentives to employ workers here in America. The largest ones are employer contributions to FICA and health care costs... (Health care costs are a double sword because having employers provide it makes it less efficient. People should have their own plans.)Feb 26, 2013
- I am well aware of how business works. I was a VP for one of the top 5 global banks...
I agree that healthcare is a major cost because it is so exorbitantly expensive in the U.S. Most people can't afford their own plans. My company's COBRA for myself and my husband was ~$1,000 per month. How are families supposed to purchase healthcare when it's that expensive?
Most countries have their own version of FICA so no getting around paying for it, but it is more expensive in the U.S. because wages are much higher than in emerging markets, although many companies are now looking for workers outside India and China because they are quickly becoming too costly as well. They also have a national healthcare plan that provides coverage to all.
Companies also move out of the U.S. to avoid doing the right thing when it comes to the environmental impact of conducting business. They don't like following U.S. labor laws either. For example: the 117 Apple workers in China that died because of unsafe working conditions. They smelled the smoke and were told to go back to work, and the exit doors were chained to prevent them from leaving. I guess that's just the cost of doing business...Feb 26, 2013
- Multi-million bonuses encourage behavior that destroys more wealth than it creates. For these schemes to make someone a million dollars, they have to swindle and lose 20 million. If they were taxed at appropriate rates, they would make investments that paid off over decades instead of this quarter.Feb 26, 2013
- The best part of Obama-care is that it sets up insurance exchanges so that individuals can get "group" rates. If you say that health insurance is too expensive for you individually then you also have to be cognizant that having your employer pay for it is a huge discouragement for them to hire. The problem with the current setup is that it removes the consumer from the costs. Because health care becomes a business expense and a non-taxed benefit for the employee businesses have a perverse incentive to make the plans more comprehensive. Insurance should be just that. Insurance. There for a calamity that you can't pay yourself. Instead we have the perverse opposite effect. Plans that max out benefits, but will cover Viagra.
And I agree that companies also move operations outside the US to get away with lower environmental and labor standards. Shame on them. Though some of it is due to the regulatory effects rather than the desire to actually perform harm... IE Not wanting to have to prove compliance or risk non-compliance effects even though they fully intend to make their product safely. If you worked as a VP in a bank I'm sure you can attest to the financial regulation disaster.
But all this is to come back to the reality of living in a global economy. If we want higher employment we need to have actual incentives (or eliminate disincentives) to hire. Cause frankly, it is relatively easy to move wealth to places where it isn't taxed. If the President continues down the raise taxes path he will soon find out that 40% of nothing is less than 27% of something.Feb 26, 2013