
Originally Posted by
BanginJimmy
He said uncertainty caused by the govt is holding businesses back from hiring and he is right if you want to believe Investors Business Daily and the Wall Street Journal.
Lets use a VERY simple example. For simplicity we will ignore current taxes. You have $4000 a week to hire new employees. If you are to pay them $10/hr that comes out to 10 employees. Now all the sudden you are being told by the govt that a new set of taxes and requirements are coming, but you dont have any firm details for you to determine how much that will cost you. Are you going to invest the money today to hire, train, and equip these new workers only to find out that these new regulations are going to cost you 2k per week, thus requiring you to lay off 5 of those new workers? Of course not. You are going to wait until you know how the new regulations and taxes are going to affect you, then you will hire appropriately.
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