Robert Reich, who elsewhere has written about the problem of overwork, frames his proposal in the NYT in terms of "putting more money into consumers' pockets." It would indeed do that. But his proposal's strategic structural effects are even bettter: it would reduce perverse tax incentives that encourage employers to use overtime instead of hiring new workers. I'm sure Reich realizes this.
Robert Reich, October 2002: "The simplest way to put more money into consumers' pockets is to cut their payroll taxes, which will instantly fatten their paychecks. Congress could exempt the first $15,000 of everyone's income from payroll taxes for two years, beginning immediately. Everyone gets the same tax cut but it's more helpful to lower-paid workers since the payroll tax is so regressive. And since employers no longer have to pay their share of these taxes, they would have a new incentive to keep more people on the payroll." http://www.nytimes.com/2002/10/15/opinion/15REIC.html Me, November 1996: "When questioned about the prospects for reducing work time and sharing the work, the standard response of business leaders is 'We can't afford it.' or 'More government regulation? No thanks!' But what if we could put together a modest, easy-to-implement plan to enable employers to voluntarily reduce their use of overtime and create new jobs at no cost to the employer or the taxpayer? What if all the plan required us to do was to make the federal payroll tax system more fair by closing a tax loophole for overtime?" http://www.vcn.bc.ca/timework/loop.htm Tom Walker 604 255 4812
