Friday, January 22, 2010

An Extreme Real Job Creation Program - Mortimer Zuckerman: The Great Recession Continues - WSJ.com

Mortimer Zuckerman: The Great Recession Continues - WSJ.com

Sometimes it's also helpful to consider extremes that can highlight where current policies have gone wrong. Wrong, not out of malice per se, but from ignorance of unintended consequences.

Example: (to create jobs) - what if anyone starting a business was told that they would pay no tax on any gains from that business (or only 5% tax); and, that every employee they hired would be an independent contractor - i.e. they would take care of their own health insurance, social security, workmen's comp., unemployment insurance, etc. - and, there would be no minimum wage, etc.? Also, the business could hire anyone - foreign or domestic (and, only perfunctory paperwork for immigrants).

Also, no unionization would be permitted and any local and state taxes would be zero; also, other than environmental permits, there wouldn't be any government regulators breathing down the back of the business owner.

If the business owner wanted to get investment capital, any money he paid back to investors would be tax-free!

I can't help but think it would be an incentive to start a business.

It is clearly idealistic in today's economic and political environment. But, every place where the above is violated, and the degree to which it is violated, shows why jobs are not being created or being lost!

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