Friday, February 11, 2011

Higher Pay Gains Seen for 2011 - WSJ.com

QUESTIONS ON JOB OPTIONS: Higher Pay Gains Seen for 2011 - WSJ.com

George, I was thinking more about the typical family with two wage earners on reasonable salaries.

To start with, when they have a family, they have lots of choices - amongst which is one partner staying home to raise the kids.

Since any domestic work is paid for with 'after-tax' dollars, I've often seen the tradeoff where one spouse stops working.

However, most of what they do is within the ability of someone with a lesser level of education being able to handle rather well.

Thus, why shouldn't any payments to someone out of 'earned income' be tax deductible?

Plus, instead of making maids, nannies, etc. be 'employees', why not let them be 'independent contractors'? Besides making their employment easier (after all, we are trying to create jobs for the lesser educated), it will let them see how government is adding to their salary with all of the 'benefits' that employers have to pay?

If the government feels these people aren't competent to handle benefit filings, then this is a constructive option to outsource some private work to people like H&R Block - except that instead of just taxes, these people will file all of the government benefit taxes that independent contractors could pay?

The end result is that a number of skilled workers (current unemployment less than 5%) might stay in the workforce. Thus, added productivity; less pressure on wages; etc.

And, those who can't find work, would suddenly be able to contribute to the overall well-being of society by having a real job?????

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