Also, the higher-paying US
full-time jobs tend to be in manufacturing and in technology. But the many manufacturing and technology
companies which are under earnings pressure will not be adding higher-paying US
full-time jobs until this earnings pressure is released and reverses course.
Therefore, it only makes sense that there be enacted wisely designed,
near-term, cost effective tax incentives that will reverse this earnings pressure
for companies in these two key sectors, where many of the higher-paying, US
full-time jobs exist.
This proposal provides two very lucrative US Federal Income
Tax incentives for businesses which increase their total number of US full-time
payroll counts in calendar 2013. And in both
cases, this total increase in 2013 US full-time payroll counts must be retained
for at least the next three years, or else these very lucrative tax benefits
are proportionately recaptured.
The first tax incentive is to give first-year 100% US
Federal Income Tax Expensing for all Equipment acquired and Software Costs incurred
by all businesses in 2013, assuming there is also a sufficient increase in
total US
full-time jobs by this business during 2013.
This is a substantial step up from the first-year 50% bonus tax
depreciation that presently exists for 2013 equipment purchases.
And what makes this 100% US Federal Income Tax Expensing
particularly stimulative in the near-term is that with upcoming Business Tax Reform,
the subsequent years’ post 2013 earnings resulting from this investment will be
US Federal Income Taxed at a much lower income tax rate than the tax rate prevailing
in 2013, the year the entire 100% Tax Expensing Tax Benefit is received.
And the second tax incentive gives US multinational corps a one-time
somewhat discounted US Federal Income Tax Rate on Foreign Earnings Repatriated just
in 2013 for all US
multinational corps which also increase their US
full-time payroll counts sufficiently in 2013.
This somewhat discounted foreign earnings repatriation
should be highly progressive, where the amount of the discount to the Statutory US Federal
Income Tax Rate is substantially higher for the lower amounts of Foreign
Earnings Repatriated.
Based on CBO scoring, the second tax incentive here results
in a substantial US Federal income tax receipts increase, which far exceeds the
US Federal income tax reduction from the above first tax incentive.
Thus, there will be a net very significant US Debt Reduction
from these two proposals.
And this is another case of proposals which in the aggregate
will both reduce US Debt and also create higher-paying US
full-time jobs, and in this case, a substantial near-term increase in sustainable,
full-time, higher-paying US jobs.
So I would call this US Tax Policy which results in a fair
sharing of the economic tax benefits by both the business receiving the tax benefits
and their newly hired employees.
