Creating A New Job Carries a Punishing Price Due to Government's 33% Surtax on a Typical Job
Michael Fleischer, a small business owner in New Jersey, writes in today's WSJ that when he adds it all up, it costs him $74,000 to put $44,000 in his median-paid employee's pocket and provide her with $12,000 in benefits, because of the 33% surtax charged by the state and federal governments for income taxes, Social Security taxes (employer and employee shares), state and federal unemployment coverage, workers' compensation, and Medicare (employer and employee shares). Mr. Fleischer concludes that:
"A life in business is filled with uncertainties, but I can be quite sure that every time I hire someone my obligations to the government go up. From where I sit, the government's message is unmistakable: Creating a new job carries a punishing price."
HT: Juandos and Pete Friedlander