| Unemployment claims have risen to 531,000 from | | | | However, concerns arise that companies may abuse |
| 520,000 during the week of Oct. 17th forcing | | | | this system by firing current employees and then hiring |
| businesses to cut costs until claims turn around. As a | | | | them back once the tax is put into action, ultimately |
| result, future jobless claims are anticipated to fall within | | | | ending in government just handing out money. |
| 500,000 to 540,000 throughout 49 states. | | | | On the other hand, FICA is already considered a tax |
| A dispute over how to finance the extension of | | | | on job creation, taking more money from employees |
| unemployment benefits is prevailing. While democrats | | | | then income tax alone. If we were to cut the FICA tax |
| argue to extend an employer payroll income tax, | | | | in half it would become more affordable to hire and or |
| republicans are arguing on how to avoid increasing | | | | avoid layoffs. In addition, it would allow those who earn |
| federal debit. New tax credit and payroll tax policies | | | | less than $100,000 to obtain a 7.5% raise. A one-year |
| are coming to be producing valid arguments on both | | | | payroll tax holiday on the first $20,000 of income is |
| ends. Around sixteen percent of the nation's total | | | | proposed which would uphold benefits for both the |
| workforce is unemployed, adding a negative outlook | | | | employee and employer allowing for more income to |
| on the years to come. Might these tax incentives be | | | | be spent on goods and new hires. |
| possible solutions? | | | | A potential downfall for this tax proposition is that it |
| A tax credit would be the smaller of the two, and | | | | may not help the low-income worker enough and will |
| more targeted to hiring companies in order to reduce | | | | not guarantee that the money will be spent on new |
| the cost of the new employee. The credit would also | | | | employees. |
| create more money for businesses to make needed | | | | In regards to the current payroll system, government |
| hires and for employees to gain more money to | | | | has been able to merge 26 ordinances into four which |
| spend. In short, companies will get money to hire | | | | will increase savings of up to one billion dollars over the |
| employees. An estimated 5.7 million jobs could be | | | | next ten years, yet, in order to modernize the system |
| fashioned by the tax within two years, costing the | | | | to appropriately fit current economic situations, more |
| government around $27 billion total or $5,400 per | | | | time and money will need to be implemented. |
| every new full-time job produced. | | | | |