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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.]

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