The Learning Curve

New tricks for an old dog.

Seven million ways to balance the budget

There is a simple way to increase Federal revenues without increasing taxes, which also cuts Federal spending at the same time. It is called JOBS! A big part of the current Federal deficit has resulted from increased unemployment. Jobs loss reduces Federal tax revenue receipts and increases Federal spending as the newly unemployed turn to unemployment benefits and food stamps, or other forms of assistance. Increasing employment has the reverse effect.

There are currently about fourteen million unemployed in the country. That’s fourteen million people who are actively looking for work, but can’t find it.

A single person earning $30,000 per year pays about $7,500  in Federal income and payroll taxes, so the math is easy. Seven million new jobs would reduce the unemployment rate to about 4.5%. Seven million new jobs  would add about $53 billion per year to Federal revenues without raising tax rates. Seven million new jobs  would also reduce Federal spending by a considerable sum. New jobs would also solve most of the fiscal problems faced by cities and states.

My advice to the idiots in Washington is to forget about slicing and dicing the baloney, and to focus instead upon job creation.

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Written by Tom Fox

07/23/2011 at 10:13 am

Posted in Politics

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