One Explanation for the Slow Employment Recovery

Business owner Michael Fleischer of New Jersey provides an inside look at how taxes, especially in high-tax states, are choking job growth even in the presence of a persistent (though weak) recovery. Providing considerable detail and more internal data than many businesses would be willing to show, Mr. Fleischer demonstrates that the paycheck received by an employee is only about 60% of the cost to the employer for employing that worker (gross pay being about 80%). For this, the employee gets a $59,000 annual salary (apparently about the national median income), life, health and dental insurance. Mr. Fleischer also points out that a tax increase on health insurors led to higher insurance premiums for the employee and employer while reducing some benefits and that serving as a tax collector adds to uncertainty in an already soft recovery.

A very instructive article by Mr. Fleischer, who does not even cover the cost of complying with other human resource-related federal and state regulation. Big government doubtless carries some benefits--whether the benefits are worth the cost; however, is quite a different question.