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In the fiscal year 2011 and 2012 (starting October 1) and continuing through the date of the most recent BLS update or January 31, there have been 87 official work days. This is the period which we will define as YTD (fiscal year to date period) for 2012, and will use its matched equivalent for 2011 for comparative purposes.
In the 2012 YTD period, the US Treasury recorded personal income withholding tax revenue of $592.676 billion (source)
In the comparable period for 2011, beginning October 1, 2010 and continuing through January 31, 2011, withholding taxes were $592.984 billion (source)
In other words, the US Treasury collected $310 million more in tax withholdings in the first 4 months of fiscal 2011 than in the first 4 months of fiscal 2012.
Presented visually - the black bar shows the cumulative divergence between the fiscal 2011 and 2012 data series. Below zero, such as that on January 31, is bad.
Based on establishment survey data, the US started fiscal year 2011 (Sept 30, 2010) with 129,885,000 employed (source)
Based on establishment survey data, the US started fiscal year 2012 (Sept 30, 2011) with 131,694,000 employed (source)
Based on establishment survey data, at January 31, 2011, the US had 130,456,000 employed (source)
Based on establishment survey data, at January 31, 2012, the US had 132,409,000 employed (source)
Said otherwise, in the first 4 months of fiscal 2011 the US "created" 571,000 jobs; in the first 4 months of 2012, the US "created" 715,000 jobs.
More importantly, between January 31, 2011 and January 31, 2012 the US added 1,953,000 jobs.
Over the same period, as shown above tax withholdings are actually trending lower in 2012 compared to 2011!
But that's not the kicker. This is:
The 130.456MM workers "employed" at January 31, 2011 created a total of $592.985MM in withholdings, or on average of $4,545.48 per worker over the first 4 months of the fiscal year 2011.
The 132.409MM workers "employed" at January 31, 2012 created a total of $592.675MM in withholdings, or on average of $4,476.09 per worker over the first 4 months of the fiscal year 2012.
Translation: based on the above, even as America was "creating" jobs, 2 million to be precise (and 2.5 million between Sept 30, 2010 and January 31, 2012), the government tax revenues created by these jobs actually declined in 2012 compared to 2011, on a per job basis, by roughly 1.5%!
Originally posted by ColCurious
I don't get it.
The author uses BLS data (which he says is #) and survey data from the US Treasury to calculate a tax revenue decline by ~1,5% per job... why is this a big deal?
That's because MORE jobs were created and LESS taxes came in.
Originally posted by Rockpuck
*sigh* I hope this economy gets turned around soon..
Originally posted by AlreadyGone
To go beyond 7.75 an hour at Mickey Ds you have to have a skill or ability.
Very correct. Also what I see happening is many jobs that are advertised as regular jobs are actually more of a subcontractor position. We have unemployment here in our household and the positions available require that you provide your own workers comp & general liability. By hiring subcontractors the company does keep their costs down and the burden of the required coverages are assumed by the workers.
Originally posted by The Cusp
Most companies are not hiring full time these days. They would rather hire several part time employees, that way they don't have to pay benefits. These part timers get fewer hours, with no guarantees that they will get any hours at all.