A Solution To Government Firings And The Impact On The Economy…

I spent many years designing tax shelters for real estate investors so my suggestions should have some merit. If the Twitter model is followed Musk will throw 1.6 million federal employees out of their jobs, presuming 2 million are federally employed. But no matter the number, there will be an impact.

Adding that or even a smaller number to the unemployment roles can’t be constructive to the economy as a whole even if beneficial to the budget and eventually national debt. Here is the solution to keep this action from hurting the economy drastically:

For example, if a transportation department employee making $100,000.00 a year is terminated he/she likely begins to draw unemployment or possibly retirement if qualified. Let’s avoid that. Let’s say a private company, possibly a road building contractor (or any other private employer), is offered a tax credit, not a normal deduction, but a full tax credit if they hire that federally terminated employee. First, it costs the fed nothing to lose that tax revenue as they’ve saved that amount by terminating the employee. Second, the private company gets a free employee for that year. That credit should be applicable for only one year, even if split over calendar years, then should diminish at, say, 25% a year. Year two the company gets a $75,000 tax credit, year three $50,000, year four $25,000, then nothing. The impact of throwing a federal employee out of a job is spread over four years, and his/her being rehired immediately is almost assured. What company wouldn’t risk hiring a FREE employee. And the Fed is beginning to profit from the diminishing deductions. If that employ hasn’t proven his worth to the private company by the end of a four-year-period it only proves the fed was right in terminating him in the first instance, or at the minimum was right in its cost cutting motivation.

L. J. Martin