Wisconsin's Republican lawmakers, rewriting Gov. Scott Walker's plan, propose to give $1000 to the state's employers for every job they "create."
Walker, you may recall, has guaranteed he personally will create 250,000 jobs in the next four years.
So the math is easy: 250,000 jobs times $1,000 equals $250-million from the state treasury.
Of course, it might be worth it if that really created 250,000 jobs. But in real life, no one is going to create a job or hire a new employee to get a $1,000 tax break. The jobs will be created because there's a need for more people to work, because an employer is selling more or producing more or expanding.
And think about the bureaucratic nightmare trying to figure out which jobs are real, lasting and deserve the credit. Sounds like a good job for Walker's new commission on waste, fraud and abuse, all three of which are sure to run rampant.
A couple of comments on the Journal Sentinel online story, remarkably, make some sense for a change:
the only thing that gets companies to hire more staff is having increased demand for the goods and services they provide...period. All these schemes to credit this and tax break that don't mean a thing. Show me one business man who says...hmmmmm, I think I will hire someone I don't need because I will get a tax credit....I don't think so. People need confidence and jobs in order to spend money and I fail to see how this will help. I would rather see the money spent on building a new road or fixing a bridge since real people up and down the value chain will get a payday. This is just more theater.
Here's another:
Based on the comments this doesn't really look like a job creator. Do these guys have any idea what they are doing? Wouldn't it be better to give tax credits to consumers who buy certain items made in our state, which would stimulate demand? Just asking. Remember, these are politicians, not economists, I don't expect genius.
And one more:
Hmm, let's see. $1,000 incentive or a tax break. Neither will pay the amount I have to pay an employee. So I will not be hiring one either way. If I need a tax break or handout from whoever to entice me to hire when I need an employee, my business deserves to fail. Yes, I run a small business. Do you?
Plain and simple. The R strategy all along has been to strangle public services so they can privatize everything or minimally bust the unions. That comes with lower wages for employees. Means less business for me and thousands of other small businesses. More for Wal you know who.
If you don't have enough money to buy something, no tax cut is going to change that. If you do.... quit whining and pay your taxes. Be grateful you even earn enough to owe any. An awful lot of people wish they did.
The only tax that means anything to drive business would be a drastic cut to SSI taxes. Not a state issue, and likely not one to be dealt with in a meaningful way in DC.