30-60-90 Day Private Industry Job Stimulus Plan

Given the less than enthusiastic job numbers that were released last week I decided to re-publish an old blog that I had written.

Some time ago I wrote this plan – I actually had a letter dated November 30, 2009 to President Obama.  At that time I also tried to gather some support by writing to various senators, congress people, and media representatives.  Unfortunately, it received little notice.  However, among the friends who read it I did get some interest and support.  I thought it might be a good time to restate the “30-60-90 Day Private Industry Job Stimulus Plan.”

I have also thought about this year being an election year.  It would be great if Congress would approve this plan now but the reality is that the election process will close down government until after the January 20th inauguration.

Here are some key points to remember when considering this plan:

  • Private Industry: this is a plan for private industry job creation – not government jobs.
  • Private Industry Jobs: this plan lets private industry determine what jobs and titles they need without interference from the Federal Government.
  • Job Creation Rewards: There are pay outs to the private industry owners and companies who create jobs under this plan.  However, there is no pay out before the one year point after the job has been created.   In essence the Federal Government collects taxes from newly hired employees for one full year.  It then pays out the reward to the company that hired the employees.  Hopefully, a good portion of the “reward” pay-out will come from the taxes generated from the newly hired employee.  Congress would have to set aside some money as a back-up provision and could easily do some math calculations to stop the program at perhaps $250,000,000 in pay out monies.  That number could be lower or higher but the three month length of the program helps to limit exposure and keep costs within a reasonable framework.   It also allows the program to be reevaluated after a three month trial.

Here is how the plan would work.

I. Simple plan based on salary– only three categories of jobs with a corresponding job title:

– $25,000 to 50,000

– $51,000 to 75,000

– $76,000 to 125,000

      II.  Three time frames:  30, 60, 90 days to create a job.

III.   ALL NEW JOBS MUST BE CREATED IN THE USA – no entitlement to offshore jobs; no H-1B Visa candidates; US Citizens only.

Example:

  1. Salary: $76,000 to $125,000

We start the program on February 1, 2013. Create a job from $76,000 to 125,000.

Mr. or Ms. Employer — you create a job with a salary of $76 – 125K and the position/job (not the same employee) MUST remain active for one year thereafter.

If you created the job in the period listed below you will get a check back from the US Government — not a tax credit — a check! The check will be received after the first year in the program.

  1. Salary: $76,000 to $125,000

February 1 – February 28: (first 28 days) $25,000 return check

March 1 – March 31: (it took you 60 days to create the job) $15,000 return check

April 1 – April 30: (it took you 90 days to create the job) $7,500 return check

  1. Salary: $51,000 to $75,000

February 1 – February 28: $10,000 return check

March 1 – March 31: $5,000 return check

April 1 – April 30: $2,500 return check

  1. Salary: $25,000 to $50,000

February 1 – February 28: $5,000 return check

March 1 – March 31: $2,500 return check

April 1 – April 30: $1,000 return check

The program would:

— Create incentives for private industry to create jobs that are sitting on paper in file cabinets or on laptops.

— Create incentives to do it QUICKLY!!!

— Create a one year financial build up of paid taxes from employees to the Federal Government that could help pay for the program.

— Provide stiff personal and company financial penalties for those employers who cheat on the system.  Perhaps, the fines would be $50,000 for the company and a $5,000 personal fine for the specific employer.

— Maintain all appropriate Federal and state laws regarding employment obligations and protections for both employers and employees.

— Use Offer Letters, fingerprints, and Driver’s Licenses as proof of employment. After one year the employer sends a copy of paperwork to the US Department of Commerce who verifies paperwork and payroll ID tax.

— If the employee is fired for cause then the company has 30 days to replace the employee and still be eligible for the program. Federal payout to employer would extend an extra 30 days to the 13th calendar month.  There would be a limit of three employee changes per calendar year in the program; therefore the maximum payout period for any employer could extend to 18 calendar months (3 months to look for the employee and then a month’s calendar extension for payout). The bottom line for employers is that they are “not stuck” with a specific employee.

— Employers could NOT reduce their total employee staff by more than 10% during the calendar period that they participate in the program.  Additionally, the employer can NOT “hire and fire” within the specific department where the new employee will work.  That would prevent “salary substitution”, i.e., hire a $50,000 employee but fire a $75,000 employee in the same department.

— The 30-60-90 Day Private Industry Job Stimulus Plan would be implemented on a trial basis for three (3) months with a maximum budget of $250,000,000 for employer payouts. So, as envisioned, the initial commitment by the Federal Government would be $250,000,000.

— Congress would appropriate the funds for administrative costs and review the program after its initial trial period.

People get real jobs at all salary levels up to $125,000. This would be a great boost for the lower and middle classes as well as small to mid-size employers.  However, I would also strongly urge significant Federal budget cuts accompany this program’s implementation.

NOTE: If you comment off of another networking group or blog where you saw this, please copy your comment here in the comments section to keep the conversation going.

Regards – Dom

Dominic J. Fruges

Cell: 732-684-4029

@DomFruges

DomFruges@gmail.com

http://ImpalBizBuzz.wordpress.com

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