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Executive Summary
The Small
Business Bailout Program is proposed to
increase small business productivity and
reduce unemployment. The program is based
on the government funding new hires for
small businesses with 1 to 24 employees. Up
to 3 employees will be paid for by the
government per company with each employee
making an average of 12.04 per hour ($25,000
per year)
There are 4.7
million companies with 1 – 24 employees. If
half of the companies take advantage of the
program and they each hire on average 1.5
workers, this program can be run at a cost
of $20.7
billion to tax payers or under
$6,000 per employee. The total funds
required are $88 billion. The government
will recover portions of these funds via
income taxes on earned wages, taxes on
additional business profits and save
unemployment costs.
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Cost of the Small Business Bailout
Proposal |
|
|
(000) |
|
Total Funds
Required |
$88,465,331 |
|
Income Tax Paid
By Employees (15%) |
$13,269,800 |
|
Additional
Taxable Profits for Business (20%) |
$17,693,066 |
|
Unemployment
Benefit Savings (26wks/$400) |
$36,801,578 |
|
Estimated Final
Annual Cost |
$20,700,888 |
|
Based on 3.5
million jobs |
The program can
create 3.5 million jobs. With 14.8 million
people unemployed today and an unemployment rate
of 9.7, this could reduce unemployment to 11.3
Million or 7.4%. If another 500,000 jobs are
lost during this time, unemployment would be at
11.8 million or 7.7%.
The proposal is
for this program to last for 2 years.
Click
here for full proposal in .pdf format
* Source: U.S.
Small Business Administration, Office of
Advocacy, based on U.S. Census Bureau,
Statistics of U.S. Businesses 2006
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