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.
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?