Home > Markets > The best kind of pay raise

The best kind of pay raise

January 3, 2011

Rocky just approved his employee paychecks for the first pay period of 2011. He noticed that everyone’s paycheck  increased by almost 2%.

“I don’t remember approving any raises!”  Rocky grumbled to his CFO.  “Especially not for Bosley in the mailroom. That’s the guy who nodded off while sitting in front of the postage meter — and his forehead wasted a few hundred dollars in postage stamps!”

“Rocky, it’s the tax cut,” explained the CFO.  “Congress passed a one year holiday on Social Security and Medicare taxes. Everyone’s paycheck went up by about 2%.”

“That’s great,” said Rocky.  “Allowing  people to keep their own money is always a good thing. But what should we do with all those wasted postage stamps? Maybe we should hand them out as holiday bonuses?”

[Disclosure: Reducing taxes is the most efficient  way to stimulate an economy.]

Advertisements
%d bloggers like this: