PEEKING BEHIND THE “HIRE ACT” CURTAIN

The HIRE ACT is a law passed by congress earlier this year to create jobs. The original idea on paper has been tweaked by labor unions and large construction companies to create revenue streams, using the newly created W-11 form from the IRS.

The specifics of the law can be found below, however sometimes reality is different than it seems. Here is how it is actually is being implemented, by some unions and construction companies.

Now suppose we create our own table and use a little creativity with the new W-11 form and with the endorsement of the labor unions, and some construction companies.

Employer X hires and rotates employees provided by Union O

After 30 days Group 1 is laid off and they collect unemployment. The hiring employer receives a kickback stipend from the government as a tax credit. This translates into $800,000.00 being worth $1.2 million in earned dollars.

Group 2 is hired and the tax credits are issued for the next 100 employees. When Group 2 is laid off and collect unemployment Group 3 is hired. The Employer receives additional tax credits from the government.

Once Group 3 is laid off and Group 4 is hired and the cycle continues, the unemployed from Group 1 are rehired. According to the law if they have not worked more than 40 hours the last 60 days the letter of the law has been met.

Guess who really pays the bill for this? Yes your correct, it is John Q. Public,
we the taxpayers.

On Feb 22 of this year SEIU’s Anna Burger commented on the HIRE ACT. Anna states that the Hire Act is a good first step in getting America back to work. She makes it sound so altruistic, what is in it for the unions?

In August of 2010  the U.S.Treasury Department generated a report entitled
“Updated Estimates Of Newly Hired Employees Elilible For The Hire Act Tax Exemption”.

There is even a calculator which is available from the NY State Labor department which can be found here.
http://www.labor.ny.gov/HireActCalculator.shtm

There is an actual Hire Act form available from the IRS. In it, the IRS tells employers they qualify for new tax breaks when they hire someone who has not worked for more than 40 hours in the last 60 days.

The HIRE Act is built around the new W-11 form.

Find your W-11 form here… W-11 Form

What does this mean to the working taxpayer and exactly how is this helping unemployment? Please look at the tables of data released in the Treasury Report
and draw your own conclusions on how this might be adding statistics to the job
market that has collusion from three separate entities, business employers, unions, and the government.

If there are temporary hiring cycles by business with temporary employees provided by the unions with the governments design, everyone is happy right?
Current global trends evolve in ever growing complex cycles, some overlapping within other more complex cycles that can only be observed via a macro introspective analysis.

Keep in mind that this is just one small facet of a myriad financial morass that’s
 being promulgated onto the populace.

This would involve much more data and space that we have to complete here, however just use your imagination.

Now suppose we create our own table and use a little creativity with the new W-11 form and with the endorsement of the labor unions, and some construction businesses.

Employer X hires and rotates employees provided by Union O

So as we revisit the above chart I’ve created seeing that employees are repeatedly
Hired, laid off and at the end of the cycle rehired. This generates quite a tax credit stream for the unions and businesses involved.

Now the incentive works for the employer as well, since a fee is paid back for hiring each new employee. If this cycles repeatedly then the revenue obviously increases accordingly.

This example reveals that even if the intent out of Washington was not corrupt, greed soon twisted the concept into a vehicle of deceit.

If one is so enticed go look up the whole enchilada in H.R. 2847. In 48 pages one can learn the legalese description of the Hiring Act in whole.

The public has a vote to change the massive corruption in our financial system. It will be a long vigilant process to effect change, you can make it happen.

This is due to end on Jan 2011, however one can imagine an extension since the recovery is going so well. Draw Your Own Conclusions – Need I say more?

Marco