(10-01-2010, 07:12 PM)kandrathe Wrote: If it's a tax credit for hiring, you might be wise to stipulate that you only get the credit for employees who worked for more than X months.
Edit: Okay, I think I get what you're saying. Tax credit for new hires, on a permanent or semi-permanent basis, as a % of their salary, kicks in only after a certain number of months. I know what I'd do as a business if faced with that opportunity: Replace my entire labour force.
Being charitable, I suppose you could simply apply it uniformly to all workers, regardless of whether they're new hires or not. That would lower the marginal costs of hiring and decrease the savings from firing - a direct incentive to employment.
So, yes, that should work. Probably a more efficient method than what has been adopted. Expensive, though - we're talking about subsidizing every worker in the whole country. But if it got the government borrowing money and giving it to people who would spend it, then hey, great.
-Jester