by Lam Luu

Created on: May 21, 2009   Last Updated: May 23, 2009

Tax incentives for hiring the poor is yet another sound-good-but-dangerous idea. Why, you ask? Because it is unfair, ignorant, and may cause regrettable consequences. Instead of "patching" by throwing some jobs at those people, we should think up some way to fundamentally remove poverty, and provide real opportunity for everyone.

First, tax incentives for hiring the poor is unfair. Why do some people have advantage over others in seeking jobs? Remember, the government belongs to everyone, thus it must be fair to everyone, and ensure that no one, be that person rich or poor, get any more benefits than any other people. Why, then, should the government enforce a policy that make some people more hirable than others?

Okay, I hear you, because it reduces welfare? Ridiculous. Okay, granted, the government does not pay, but that means nothing, because now a portion of its income (tax reductions) is lost. Imagine you suddenly stop using phone altogether, and you save around $100 USD/month from monthly bill. Now, suddenly, your company throws a wage cut at you, at exactly $100 USD/month. Do you have any more money, at the end? No you don't. Neither does the government if it gives companies incentives for taking people of welfare.

Furthermore, consider this: if these poor are the stereotype poor (lazy, stupid, irresponsible, etc.), then how hirable are they? Plus, if a company hires them, it will have to pay to clean up after their messes. Thus, if the government wants them to be hired, it must give more tax incentives than the money spent on hiring these people. Thus, in the end, tax payers effectively pay for these people, albeit indirectly through some third hands.

Now, this is not the end of the problem. Let's continue with the third hands: do you really think companies will simply demand just enough money to hire these poor people? No, they don't. Why go through all of the hassle, when you can simply hire a perfectly normal people? Plus, if these poor people are that bad, you don't really want to have them around, since they may drag the productivity of other good employees down. Thus, to get companies to hire the poor, we must pay extra. See the problem? How much extra is good enough? That depends on how much companies spend on lobbying, eh?

However, even if we somehow manage to get all of these poor some jobs, that will not solve anything. What kind of jobs do you expect them to have? Obviously, the type of jobs that is so low paid that they must work from

• 1
• 2
• Next Page >>