re: #353 jamesfirecat

So you’re saying tax cuts don’t work?

How does this work?

The bipartisan Senate plan would exempt businesses from paying a 6.2 percent Social Security tax on the wages of new employees, as long as the workers have been unemployed at least 60 days. The tax break would run through the end of the year.

A company could save a maximum of $6,621 if it hired an unemployed worker after the bill is enacted and paid that worker at least $106,800 — the maximum amount of wages subject to Social Security taxes — by the end of the year. The company could get an additional $1,000 on its 2011 tax return if it kept the new worker for at least a full year.

Do the businesses get a tax credit every year or just once? Does it seem likely that a business will spend $100,000 to save $6600? Does that make sense to you?