And when I say massive, I mean absolutely & ludicrously insane.
Let’s start with the administration’s base number. They claim to have directly saved or created 640,329 jobs with $159 billion of expenditures this year. That actually comes to $248,310 per job, a little higher even than the Examiner’s calculation. Using the median household income in America of about $51,000 to calculate this, how long would it take the tax revenue from each job to pay back the stimulus spending that “saved or created” it (and just the principal, not the interest accruing on the debt)? At an effective tax rate of 15%, it would take thirty-two years and five months — almost the entire career of the person holding it. At an effective tax rate of 20%, it would take less … just twenty-four years, four months.
Or let’s consider the administration’s wildest claim, that of a million jobs saved or created at $159,000 per job. At the 15% effective tax rate, it would still take almost twenty-one years to pay back the principal; at the 20% rate, fifteen years, seven months. And bear in mind that this calclation applies all of the federal taxes paid to paying back the cost of the stimulus that created the job.
It also assumes that the jobs are permanently “saved or created” by this federal intervention. That’s simply not the case. Most of the jobs in their calculus are bureaucratic jobs at the state level that won’t get funded next year by Washington. States will still have to make tough decisions on employment levels that should have been made decades ago. All Porkulus did was delay that needed decision by throwing money at the states, who used it not to improve efficiency but to paper over budget gaps that will recur next year as well.
Sound familiar, Ohio?