Posted today on CNN.com. Emphasis added:
The White House will unveil reforms to the nation’s international tax code on Monday intended to close loopholes for overseas tax havens and end incentives for creating jobs overseas.
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The administration expects these initiatives to raise at least $210 billion over the next 10 years “to cut taxes for American families, increase incentives for businesses to create jobs in America and reduce the deficit.”
What does $210 billion in new taxes mean to Americans? Let’s review.
- The median U.S. household income is about $50,000 per year.
- Let’s assume that the typical cost (insurance, office space, pens, etc.) of an employee to an employer is double an employee’s salary. (It varies quite a bit by industry, but this is a fair back-of-the-envelope number.)
- The “cost” of one $50,000 per year job over ten years is therefore roughly $1 million.
- $210 billion in new taxes over ten years can result in up to 210,000 less jobs being created, if you assume how that money could otherwise be spent providing a job to 210,000 people for ten years.
- To compare, only 16 American companies have more than 210,000 employees.
The flip side:
- The population of the United States is about 304 million.
- $210 billion in new taxes over ten years equals about $690 per person over ten years, or $69 per year, or 19 cents per day.
Feel free to thank the White House for eliminating the potential of 210,000 well-paying jobs over ten years so you can enjoy an extra $69 per year – about enough to buy one cup of coffee per week.
Depressing, isn’t it?
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