Government Spending Our Way To Better Times
By: Doug Busselman, Executive Vice President
Last week the headlines in our local newspaper indicated that Nevada’s jobless rate was the highest since 1976 – a statewide rate of 11.3 percent. On the national level, the question is being asked – where are those jobs that the federal stimulus package was supposed to produce? From this account, we might get the idea that the answer lies in more government spending to get things rolling…
Here in Nevada we will soon see the new tax kick in, doubling the amount of money that businesses pay on their employee’s payroll, above the $62,500-per-quarter level.
Let’s consider the math for those who might think about hiring somebody and pushing their payroll above the $62,500 mark... Does your business really need more help? With the increases in costs associated with the extra employee (more taxes being just one factor) will your business be a better place with having another employee?
As the Nevada Legislative interim committee works on how to expand the state’s tax base, likely considering how to acquire more revenue from business profits or simply increasing the operations of corporate entities because they owe us to be in Nevada – again the question might be in the back of some minds…How much do I want to invest in a business enterprise here, given the way elected officials believe that what’s ours is theirs?
Throughout the tax extraction process, we need to remember that those doing the taking are only doing this for “our” own good, increasing government spending at the state and national levels and then needing the extra tax revenue to pay for the increases.
Where once the strategy was to raise all boats through tax reduction measures that allowed the private sector to invest their money and grow the economy – the plan now is to place more tax load on whatever boats might still be afloat, nationalizing those which are too big to fail and government spending our way to better times.
The numbers suggest that the current plan may not be working so well. More press conferences and more spending must be the answer…
Last week the headlines in our local newspaper indicated that Nevada’s jobless rate was the highest since 1976 – a statewide rate of 11.3 percent. On the national level, the question is being asked – where are those jobs that the federal stimulus package was supposed to produce? From this account, we might get the idea that the answer lies in more government spending to get things rolling…
Here in Nevada we will soon see the new tax kick in, doubling the amount of money that businesses pay on their employee’s payroll, above the $62,500-per-quarter level.
Let’s consider the math for those who might think about hiring somebody and pushing their payroll above the $62,500 mark... Does your business really need more help? With the increases in costs associated with the extra employee (more taxes being just one factor) will your business be a better place with having another employee?
As the Nevada Legislative interim committee works on how to expand the state’s tax base, likely considering how to acquire more revenue from business profits or simply increasing the operations of corporate entities because they owe us to be in Nevada – again the question might be in the back of some minds…How much do I want to invest in a business enterprise here, given the way elected officials believe that what’s ours is theirs?
Throughout the tax extraction process, we need to remember that those doing the taking are only doing this for “our” own good, increasing government spending at the state and national levels and then needing the extra tax revenue to pay for the increases.
Where once the strategy was to raise all boats through tax reduction measures that allowed the private sector to invest their money and grow the economy – the plan now is to place more tax load on whatever boats might still be afloat, nationalizing those which are too big to fail and government spending our way to better times.
The numbers suggest that the current plan may not be working so well. More press conferences and more spending must be the answer…
Posted by Doug Busselman at 6/22/2009 7:27 AM 
Categories: Federal Stimulus
Tags: Unemployment Government Spending
Categories: Federal Stimulus
Tags: Unemployment Government Spending
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