Posted on 08/10/2010 6:10:35 AM PDT by KeyLargo
Why I'm Not Hiring
When you add it all up, it costs $74,000 to put $44,000 in Sally's pocket and to give her $12,000 in benefits.
By MICHAEL P. FLEISCHER
With unemployment just under 10% and companies sitting on their cash, you would think that sooner or later job growth would take off. I think it's going to be latermuch later. Here's why.
Meet Sally (not her real name; details changed to preserve privacy). Sally is a terrific employee, and she happens to be the median person in terms of base pay among the 83 people at my little company in New Jersey, where we provide audio systems for use in educational, commercial and industrial settings. She's been with us for over 15 years. She's a high school graduate with some specialized training. She makes $59,000 a yearon paper. In reality, she makes only $44,000 a year because $15,000 is taken from her thanks to various deductions and taxes, all of which form the steep, sad slope between gross and net pay.
Before that money hits her bank, it is reduced by the $2,376 she pays as her share of the medical and dental insurance that my company provides. And then the government takes its due. She pays $126 for state unemployment insurance, $149 for disability insurance and $856 for Medicare. That's the small stuff. New Jersey takes $1,893 in income taxes. The federal government gets $3,661 for Social Security and another $6,250 for income tax withholding. The roughly $13,000 taken from her by various government entities means that some 22% of her gross pay goes to Washington or Trenton....
(Excerpt) Read more at online.wsj.com ...
This says it all:
About Bogen
Bogen Communications International, Inc., the parent company of Bogen Communications, Inc. and Speech Design GmbH, is a leading provider of sound systems and telephone peripherals for commercial, industrial, and institutional applications the world over
“We are currently accepting resumes for the following position:
NO POSITIONS ARE CURRENTLY AVAILABLE.
http://www.bogen.com/aboutus/employment/
http://www.bogen.com/aboutus/aboutbogen/
“Could use a warning that following the wsj link requires subscription.”
More than that, since the page is a pitch for PAID subscription, it amounts to solicitation, which I thought was banned around here. It ought to be.
Hank
I would have loved to finish that story, too, but I’m not willing to subscribe just for one editorial.
This story provides a textbook illustration for why unemployment is so stubbornly high and will remain so. Government meddling in the labor market has made it just too damn expensive to hire anybody, even at minimum wage, and there’s no telling what new taxes, fees and costs Obummer will add later. Why get stuck with long-lasting unemployment and COBRA costs when you can just ship the job off to Indonesia?
Ping for later
>To offset tax increases and steepening rises in health >insurance premiums, my company needs sustainably higher >profits and salessomething unlikely in this summer of >recovery.
What he doesn’t see is that his customer base is hit with the same cost increases. More than likely he will see customer bankruptcies, longer days to pay, and increased costs from his suppliers.
Obamacare is a business and jobs killer.
No, that's $74,000 in direct costs for this woman as an employee: including employer-paid health care premiums, unemployment insurance, and employer-paid FICA taxes.
I read the article yesterday: I believe her "official" salary is $59,000 -- and she takes home $44,000.
It was just a rumor, which has already been shot down by the White House. Of course, maybe it was a trial balloon.
This is supposed to be his GIFT to keep him in office.
When this originally came out, I opined that this would be his fastest ticket OUT of office. And Rasmussen appears to substantiate that:
58% Oppose Federal Mortgage Forgiveness Plan for Troubled Homeowners
Read the article. Only 28% favor such a proposal. And you can be almost certain that those are people that would be voting for Democrats anyway. Heck, less than half of Democrats think it would be a good idea.
The Political Class (click link and read toward the end for the definition) is the only group in which a majority think it's a good idea.
And we have USA Today giving the Obama party line that there is nothing to worry about, companies will be hiring like crazy any day now - sarc.
This line is the best:
“Still, economists contend that the big productivity gains of recent quarters are actually harming the economy’s prospects for a sustainable rebound...”
Translation:
Obama demands that companies transform into private welfare programs by being less productive and hiring more people to do less.
USA TODAY
Worker
productivity
falls, could lead
to more hiring
Updated 55m ago
By Martin Crutsinger, AP Economics
Writer
http://www.usatoday.com/money/economy/2010-08-10-productivity-report_N.htm?csp=15
Yeah, it costs a LOT more to hire a person than just their base salary.
And every time the FedGov slaps another "mandatory" benefit onto a company, or closes the window on how many companies must comply, it costs even more. As a result, fewer people are employed - not more - because unlike the FedGov, businesses have to PRODUCE instead of just printing funny money.
Then again if NJ didn't have the highest taxes in the country then we wouldn't be able to pay all of our government employees who work so hard (that's sarcasm by the way). I mean where else can cops earn 150k a year and then retire at age 45 and receive a starting pension of 65% of the average last 5 years salary plus medical for life.
Don't the unions and socialists realize that they are destroying their future incomes and tax bases?
As one freeper said, I would tell them the story about killing the Golden Goose, but they would probably say the government will buy them another goose.
Yea, giving away other people's money.
See, even the Dems believe in trickle down.
In their own peculiar way.
And he says Republicans don't have any new ideas? What is new about spending money?
Agreed. What will be interesting is watching them re-up the Bush tax cuts later this year. They’ll hate to have to do it after trashing them for years, but I don’t think they have the backbone to take the heat for letting them lapse.
” What will be interesting is watching them re-up the Bush tax cuts later this year. Theyll hate to have to do it after trashing them for years, but I dont think they have the backbone to take the heat for letting them lapse. “
LOL! Even half of the DEMS know what will happen to the economy next year w/o the tax cuts, and they want to be re elected ;-)
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.