HOW PRESIDENT OBAMA STOLE MY SUGGESTION

Dear readers, as explained in previous posts, part of my "job" is that of a political columnist for local papers. Below is a letter that I wrote, in early August of 2009, concerning unemployment, and urging our government to create incentives for employers to hire. This was sent to SC reps, as well as Congress, the Senate, GOP rep Michael Steele -- any email address I could find which seemed applicable -- and finally, to the Whitehouse, to President Barack Obama.

What will follow in further posts is shocking, if not unbelievable, or cynically, all too believable. Giving all parties involved almost five months to act was my gift of the benefit of doubt, now it's time to "out" it. Stay tuned!

Dear (applicable title and name),

According to the Bureau of Labor Statistics, job losses from April to June of 2009 averaged 436,000 per month. Their website also explains that payroll employment has fallen 6.5 million since December 2007.

The Tax Policy Center (taxpolicycenter.org) shows that in the 2008 fiscal year 45% of the government's revenue came from the individual income tax and an additional 36%was derived from payroll taxes. That is a stunning 81% of our country's revenue at least somewhat related to employment.

The only way to increase revenue is to raise taxes or create more jobs. Unemployment is putting a big dent in the retail sales and housing market. Without expendable cash, and people saving more than ever due to the recession, sales are down. Manufacturers and other business owners are losing their customers, in turn reducing costs by downsizing their work force or closing, creating more job losses. Employers are simply not hiring.

Unemployment also affects contributions into Social Security. I have yet hear hear how the severe job losses will affect this program.

There is currently no government incentive for a business to retain or hire an employee. The employers cover wages, salaries, and their part in the payroll tax as well as any additional benefits offered. With every job loss we are missing government revenue and the possibility to boost retail sales and business growth. Better sales and growth usually creates new jobs.

In pre-election debates there was a mention of the possibility of lowering the payroll tax. It could be one of the best incentives for employers to hire or retain workers. If we were to lower the tax by "x" amount for each employed individual, it would, of course, mean lost revenue for the government during that limited time period. In contrast, if we do nothing, we will continue to miss out on the potential taxes that the unemployed workforce could be supplying.

In our nearby city of Greenville, 12,000 applicants showed up last month for a job fair at the Haywood Mall. There were only 500 positions available.

Doing nothing gives us a surefire loss. A cut in taxes or a new incentive for employers might motivate them to retain or hire, put a few dollars extra into the benefactor's pocket, possibly increasing business sales and profits.

It's our choice. We can sit and do nothing and take the losses, or we can introduce a chance. I ask you to please start a dialogue in Washington concerning a "hiring incentive" program for employers.

Kind regards,
Brian Burke