Archive for » May 2nd, 2012«

Top Judge Makes Free Legal Work Mandatory for Joining State Bar

The approximately 10,000 lawyers who apply to the New York State Bar each year will have to demonstrate that they have performed 50 hours of pro bono work to be admitted, Chief Judge Jonathan Lippman said. He said the move was intended to provide about a half-million hours of badly needed legal services to those with urgent problems, like foreclosure and domestic violence.

The need has exploded in recent years as the economic crisis delivered what advocates for the poor call a triple whammy: more people are struggling financially; more people need legal services to cope with foreclosures, evictions and credit and employment problems that could push them into long-term poverty; and state and federal financing for legal services has plunged.

The Legal Aid Society, the nation’s largest provider of free legal services, turns away eight of every nine people seeking help with civil legal matters, said Steven Banks, the New York group’s attorney in chief. Since the economic downturn began in 2008, Mr. Banks said, requests for assistance have jumped 40 percent for health care issues, 54 percent for unemployment insurance and work-related problems, 16 percent for domestic violence and “a stunning 800 percent” for foreclosures.

While criminal defendants have a constitutional right to free legal representation, defendants in civil cases — as well as people who need legal help for essential needs like applying for disability benefits — do not.

In his three years at the helm of the state’s court system, Judge Lippman has made New York a national model and has been praised in the legal profession by addressing what he calls the justice gap, allocating millions of dollars from the courts’ administrative budget for free legal services and making it easier for retired lawyers to take pro bono cases.

But his latest measure may prove more controversial, some of his admirers said, because it wades into a fierce debate among lawyers over whether mandatory pro bono service is the right solution — and because it could hit the pocketbooks of young lawyers at a time when they are struggling to find jobs. Judge Lippman and the court administrative board have the power to do so because, unlike in many other states, the New York court system, and not the bar association, sets the requirements.

“Lawyers do not like to be told what to do,” said Esther Lardent, president of the Pro Bono Institute, a nonprofit group that works with law firms to improve their pro bono services. “I worry about poor people with lawyers who don’t want to be there.”

In New Jersey, lawyers have long complained about a 20-year-old court order that allows judges to assign private lawyers in their counties to certain cases that are not covered by its public defenders. Some lawyers can win exceptions, but many argue that the burden is unevenly spread, falling more heavily in counties that have fewer available lawyers.

Supporters of the plan acknowledge that it will require more training and supervision for law students and recent graduates, who can file legal papers and appear in court if they are supervised. But they said they hoped it would dovetail with an increasing focus in many law schools on clinics that provide practical experience.

Because New York is a magnet for top law schools across the country, its bar requirements could help prompt the expansion of pro bono work elsewhere, said Don Saunders, a vice president at the National Legal Aid and Defender Association in Washington, who called Judge Lippman’s work to increase the amount of money for legal services “groundbreaking.”

Ms. Lardent, who supports pro bono requirements for law students, said she liked a “big audacious idea” if it did not place undue burdens on young lawyers who face a difficult job market and, if they are new to New York, may need help finding appropriate pro bono work.

For his part, Judge Lippman made clear that he believed the requirement would be a source of satisfaction to most lawyers and would not be onerous — it could be completed in a weeklong summer internship, members of his staff noted.

Pro bono work would be defined to include steps like representing poor people in civil court and legal work for a nonprofit group or government agency.

“The legal profession should not be seen as argumentative, narrow or avaricious,” Judge Lippman said in Albany at one of the many Law Day ceremonies held around the country on Tuesday to celebrate the rule of law, “but rather one that is defined by the pursuit of justice and the desire to assist our fellow man.”

Because detailed regulations have yet to be drafted, it is unclear whether lawyers moving to New York in the middle of their careers would be affected, or whether the work would have to be completed in the state. The graduates of New York law schools in 2010 made up less than half of the new lawyers admitted to the bar.

Judge Lippman said that while the preference was for work in New York, there would probably be provisions to allow recent law graduates to count work done while in law school elsewhere.


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Job fair hirings trickle; labor eyes wage hike

WHILE government labor agencies held job fairs and talked about the employment picture, labor groups took to the streets and aired anew their demands for higher wages and job security in yesterday’s annual Labor Day observance.

About 178 job seekers were hired on the spot out of 5,900 registered applicants in four areas of job fairs in Central Visayas or around 3 percent of the total applicants as of 3 p.m. yesterday.

In Cebu City’s streets, both militant and moderate labor groups staged march rallies to ventilate their demand for a new wage increase ahead of the one year period for approving wage increases under the law.

Regional Director Ma. Gloria Tango of the Department of Labor and Employment in Central Visayas (DOLE-7) said there were 25,000 available jobs but only 5,900 applicants for the openings.

She said they expect the initial numbers of hired applicants to rise once they complete gathering of data from the four venues of the job fairs in the region.

In Cebu, the job fairs were held in the Cebu City Sports Center/Abellana grounds for overseas, SM Cebu and the Cebu International Convention Center (CICC) for local employment.

Job fairs were also held in all SM and Robinsons Place centers in the cities of Cebu and Dumaguete for local and overseas employment.

In SM Cebu, PR manager RJ Leduna said 45 applicants were hired on the spot as of 3:15 p.m.

Leduna said 42 companies joined the job fair and around 2,000 applicants were recorded.

Tango said most of the available jobs were for services or jobs in the malls. There were also jobs for call centers.

“Maybe they got tired. But after collating all the data, we will make an evaluation to find out why there were fewer applicants compared to the number of available jobs,” Tango said.

Tango said the total unemployment rate in Central Visayas was at 7.5 percent or about 223,000 jobless persons as of January this year.

She said this was lower than the January 2011 unemployment rate of 8.2 percent.

The Technical Skills Education Development Authority in Central Visayas (TESDA-7) said one reason for the high unemployment rate is the mismatch between job openings and the skill set of graduates who finished different courses.

Arturo Barrit, Tesda-7’s officer in charge of the Workers Training Center, said they encourage students to take up technical and vocational courses since these are “more in demand now” in the domestic and overseas market.

“The thing is, how to fill the gaps of the growing graduates with four-year course who fall on the wrong job because they don’t have the right skills,” said Barrit.

Tesda approved last month the accreditation of the Associated Labor Union–Trade Union Congress of the Philippines (ALU-TUCP) Worker’s Training Center Foundation Inc., which opens today for applicants age 18 to 55 years old.

Elsewhere about 5,000 workers from 21 labor groups marched towards the DOLE-7 office in front of the Plaza Independencia in Cebu City to demand a new wage increase at past 8 a.m. yesterday.

The labor coalition called Nagkaisa (Unity) also called for a halt on labor contractualization and child labor.

Ferdinand Jumapao, ALU-TUCP acting area vice president for Central Visayas, said they hope a wage hike is approved this month.

Cebu Archdiocese media liaison officer Msgr. Achilles Dakay, who officiated the Mass sponsored by ALU TUCP at the ALU’s St Joseph the Workers Chapel, urged government to consider the plight of the workers in approving any wage hike.

For their part the militant group Bayan questioned the Aquino administration’s economic policies, saying it doesn’t generate adequate jobs and promote national industrialization.

“The export companies in the Mactan Export Processing Zone are just buying their materials outside the country and assemble and repack it here to save on labor expenses and taxes,” said Bayan leader Jaime Paglinawan in Cebuano.

He said a P125 across-the-board national wage increase should be approved not by the Regional Tripartite Wages and Productivity Board (RTWPB) but by Congress.

The Cebu City police said yesterday’s march rallies, which began at Osmeña Boulevard and ended at Colon Street, were relatively peaceful.

They were augmented by Central Command (Centcom) troops. /Jhunnex Napallacan and Tweeny M. Malinao, Correspondents with reporter Rhea Ruth V. Rosell and correspondent Chito Aragon



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Taxes and Employment

DESCRIPTION

Bruce Bartlett held senior policy roles in the Reagan and George H.W. Bush administrations and served on the staffs of Representatives Jack Kemp and Ron Paul. He is the author of “The Benefit and the Burden: Tax Reform – Why We Need It and What It Will Take.”

Since the beginning of the economic crisis, Republicans have insisted that tax cuts and only tax cuts are the appropriate medicine. They almost never explain how, exactly, this would reduce unemployment other than to say it worked for Ronald Reagan in the 1980s.

Today’s Economist

Perspectives from expert contributors.

If one were to take the Republican argument seriously, the linkage would have to be via the tax wedge. This is the principal means by which the government affects employment, according to the Republican economist Arthur Laffer. The tax wedge is the difference between the cost to an employer of employing a worker and the after-tax reward that the employee receives.

When taxes go up, the tax wedge gets larger, costing employers more to hire workers at a given after-tax wage. Therefore, it is theoretically possible that a tax cut could increase employment by reducing the tax wedge and allowing employers to hire workers at a lower cost without reducing their after-tax wages.

This is a perfectly reasonable theory. There undoubtedly have been times when the tax wedge was increasing because of bracket creep or legislated increases in payroll taxes that may have had a negative effect on hiring. Whether this is the case now, as Republicans assert, is a question for analysis.

One problem with the tax-wedge theory is that taxes are at a historical low as a share of the gross domestic product. According to the Congressional Budget Office, federal revenues will be 15.8 percent of G.D.P. this year. The postwar average is about 18.5 percent, and taxes averaged 18.2 percent during the Reagan administration; indeed, at their lowest point in 1984, federal revenues were 1.5 percent of G.D.P. higher than they are now.

Another problem is that there hasn’t been a significant tax increase affecting average working people since 1983, when Reagan raised the payroll tax rate to 15.3 percent from 13.4 percent (employer plus employee). Contrary to popular belief among Republicans, there have been no significant tax increases during the Obama administration. In fact, there have been tax cuts aimed directly at workers.

The making-work-pay tax credit consumed some 40 percent of the budgetary cost of the 2009 stimulus package and reduced taxes for every person or household with a positive income-tax liability and an income below $75,000 in 2009 and 2010. In 2011 and 2012, the making-work-pay credit was replaced by a temporary 2 percent cut in the payroll tax rate, reducing taxes for every worker.

The reason that unemployment is high clearly has nothing to do with taxes. Consequently, there is no reason to think that reducing taxes further will do anything to raise employment by reducing the tax wedge.

Additional evidence on this point comes from a new study by the Organization for Economic Cooperation and Development on taxes paid by average workers in its 34 member countries. The data below are for a single worker without children.

Organization for Economic Cooperation and Development

As one can see, the United States is a low-tax country with a total tax wedge of 29.5 percent. Three-fourths of O.E.C.D. countries have a larger tax wedge on average workers.

I have also included the latest data on the percentage of workers employed as a share of the working-age population. I think this is a better measure of the health of the labor market than the unemployment rate, which goes up and down for a variety of reasons unconnected to taxes.

Here, too, there is little evidence that taxes affect employment one way or another. Almost half of the countries with a bigger tax wedge employ a larger percentage of their working-age populations than the United States does, and more than half of those with a smaller tax wedge have lower employment ratios.

One argument Republicans could make in response is that the tax system has been in flux for the last 11 years. The Bush tax cuts were all set to expire at the end of 2010 and then were extended at the last minute for two additional years. The making-work-pay credit and subsequent payroll tax cut were also enacted temporarily.

One might reasonably conclude that businesses are unlikely to react to temporary tax changes and need some idea of the long-term tax environment to really affect their hiring actions.

But Republicans designed their tax cuts to be temporary in the first place; they rejected the idea of a bipartisan permanent tax cut because that would have required compromising with Democrats.

The latest Republican tax cut proposal, to reduce taxes for all businesses with fewer than 500 employees, no matter how profitable or big in other respects, would be in effect for only one year.

This is a key reason that the Republicans’ own committee report (see Page 20) said the legislation would have a negligible effect on employment.

There is simply no evidence that cutting taxes at the present time will do anything to raise employment.


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Gov needs will to drill



Michael Benjamin

Roustabout may become the next hot job in New York — with modern versions of scenes from classics like “Giant” and “There Will Be Blood” coming to life across the Southern Tier.

If the Department of Environmental Conservation ever makes good on Gov. Cuomo’s promises and produces reasonable regulations on fracking, shale-gas wells and pipeline projects will need hundreds of roustabouts.

The median salary for the job is $38,000 annually — higher with experience. With a high-school diploma, an entry-level gas-field roustabout starts at an average of $22,000 a year.

Plus, fracking means thousands of other jobs, too — jobs New York needs to get out of its economic doldrums.

Unemployment stands at 8.7 percent statewide, and 9.8 percent in the city; in Southern Tier counties, it averages 8.9 percent.

Nationwide, jobs in the oil and gas industry are projected to grow 6.4 percent by 2016. Demand will grow for geologists, engineers, administrative assistants, sales and marketing reps, financial analysts, fleet mechanics, truck drivers, heavy-equipment operators, machinists and pipefitters.

At a recent Binghamton gas-industry jobs fair, attendees learned of opportunities for wetland and wildlife specialists, truck drivers, pipe suppliers and software engineers.

But “fracking” means “hope” for people here in the city, too — people such as my Brooklyn friend Ray Lewandowski — an ex-offender, single parent and commercial trucker who deserves this second chance.

There were jobs for those who test our water, treat and transport wastewater and keep gas-well operators honest.

Gas companies pay for road improvements, too — creating opportunities for small businesses, including minority- and woman-owned firms.

Decades of economic distress have left counties unable to upgrade many Southern Tier rural roads. Just across the border in Pennsylvania, gas companies are paying for the work, saving local governments millions of dollars.

Yes, a boom also attracts those looking to make a dishonest buck. But local law enforcement will be prepared to handle upticks in crime.

And the DEC’s Division of Law Enforcement already screens and licenses applicants for waste-transport and other permits under its “bad actors” provision. It can deny permits to unscrupulous operators or those suspected of organized crime ties.

Safety concerns? Fracking is under way across the country, with nothing remotely like the problems that critics claim it would bring here in New York. The Obama administration has endorsed it — it’s the main reason US energy production is up under this president.

The choice for New York is between well-regulated gas drilling and extraction, and thousands of good new jobs — or nothing.

So far, it’s been “nothing”; DEC Commissioner Joe Martens keeps finding reasons to delay.

Commerce opened up Western New York in the 1830s. Gov. DeWitt Clinton was ridiculed for his Erie Canal plan, but he understood that prosperity required bold action.

The next time Gov. Cuomo walks through the Hall of Governors, he should pause in front of Clinton’s portrait and commit to following his example.

Our state needs this. Fracking means an economic stimulus capable of generating thousands of good-paying jobs, plus millions of dollars in added government revenues. It could mean the success of Cuomo’s approach to leaner, smarter government.

Instead, the governor has allowed the anti-fracking crowd to seize the initiative here in New York.

It’s past time for Gov. Cuomo to join President Obama’s jobs agenda — and put New Yorkers to work in our untapped gas fields.

Have a comment on this PostOpinion column? Send it in to LETTERS@NYPOST.COM!


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Jury: Soldier wrongly fired by Catholic charity for Iraq service

A Washington National Guard sergeant was wrongly fired shortly before she deployed to Iraq, a federal jury in Seattle hearing the soldier’s civil lawsuit has ruled.

Returning its verdict late Monday, the jury found Sgt. Grace Campbell’s former employer Catholic Community Services discriminated against and wrongly fired her after learning Campbell would deploy to Iraq in 2008. The jury awarded her $485,000 in damages following a week-long trial.

At trial, Campbell’s attorneys argued their client complained to several managers that she was being discriminated against for serving in the National Guard. She went so far as to file a complaint with the Department of Defense, which sent a retired Navy commander to Catholic Community Services on Campbell’s behalf.

Coming from a military family, Campbell was proud of her decades of service with the National Guard, attorney Andrea McNeely said. Then, three months before she was sent to Iraq, she was fired and forced to look for work as she prepared to go to war.

“She made sacrifices in her civilian career to serve, and then she was fired just before she deployed,” McNeely said.

The jury’s finding that she was fired for her military service, McNeely added, was “the end of a long road” for Campbell, who is now retired from the National Guard.

Writing the court, attorneys for the charity contended Campbell, a supervisor in the charity’s long-term care division, was fired for a poor performance, a violation of company policy and an “off-putting attitude,” not her work for the National Guard.

Catholic Community Services contended at trial that Campbell was fired after she was found in 2008 to have kept “confidential client information” in a notebook she used in her work. Such information had routinely been kept by supervisors until 2007, when another supervisor at the charity had a copy stolen from her car while she was shopping.

“The record is replete with data regarding (Campbell’s) poor performance and attitude,” attorneys for Catholic Community Services told the court. “Moreover, the very serious issue of the compromise of confidential client data is key. There is no indication that the decision to terminate was in any way influenced by (Campbell’s) potential deployment.”

Campbell’s attorneys derided the charity’s claims as an attempt to cover up hostile treatment Campbell received for serving in the National Guard.

“This was a situation which never should have occurred,” James Beck, who represented Campbell alongside McNeely, said in a statement. “Sgt. Campbell told her employer about the ongoing discrimination on at least three occasions, but there was never any formal investigation or decisive action to stop the treatment.”

Employed by Catholic Community Services for a decade, Campbell served with the National Guard’s 81st Brigade for 23 years prior to her retirement in 2011. Her attorneys note she served 13 months in Iraq from July 2008 until August 2009, and also deployed to the U.S.-Mexico border for a month.

Campbell contended she began receiving hostile treatment after that initial deployment to Yuma, Ariz., in 2006.

“Co-workers made disparaging comments about Campbell’s military service to her directly … and loudly expressed their opinions that she had just wanted to take a long vacation and leave the rest of them to do her work,” Campbell’s attorneys told the court. “They treated her with disrespect and hostility on a daily basis.”

In court documents, Campbell also contended her supervisors told her she needed to catch up on her work, leaving her to believe her job was in jeopardy.

Having filed a complaint with a Department of Defense committee meant to support reservists in civilian life, Campbell was retaliated against by her coworkers and others at Catholic Community Services, her attorneys told the court. In February 2008, she learned she would be deploying to Iraq; she was fired the following month.

The jury returned its verdict in Campbell’s favor on Monday afternoon, finding that Catholic Community Services violated state and federal law in discriminating against her.

“This is a vindication of the rights of Grace Campbell and those like her who make sacrifices in their civilian lives to serve their country,” McNeely said.

Campbell has since found employment as a receptionist for a state agency.

In a statement, attorneys for Catholic Community Services reiterated the claims rejected by the jury and said the charity is weighing an appeal.

“CCS honors its many employees and families who serve and have previously served in the armed forces,” the statement read. “CCS is reviewing the verdict to determine whether additional steps, including appeal, may be taken.”

In addition to the money awarded Campbell, the charity will likely also have to pay her attorneys’ costs. U.S. District Court Judge John Coughenour presided over the trial.

Check the Seattle 911 crime blog for more Seattle crime news. Visit seattlepi.com‘s home page for more Seattle news.

Levi Pulkkinen can be reached at 206-448-8348 or levipulkkinen@seattlepi.com. Follow Levi on Twitter at twitter.com/levipulk.


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Rallies, job fairs mark May Day in Asia

MANILA, Philippines, May 1 (UPI) — Philippine workers celebrated International Workers’ Day Tuesday with marches as labor officials offered as many as 300,000 jobs during various job fairs.

Labor Secretary Rosalinda Baldoz said the nationwide job and livelihood fairs offering local and overseas jobs are among key events for the celebration, the Malaysia Star reported.

In the Philippines, thousands of public- and private-sector workers marched Tuesday to the presidential palace to press President Benigno Aquino to act on their demands, The Philippine Star reported.

Groups and unions belonging to labor coalition Nagkaisa gathered by the University of Santo Tomas in Manila to mark May Day, also known as International Workers’ Day and sometimes referred to as Labor Day. During their program, labor leaders ripped a symbolic contract to demonstrate opposition to labor policies such as privatization of government agencies and the award of what they said were low pay raises.

Some labor officials, speaking on condition of anonymity, said the Department of Labor and Employment said the ministry was having difficulty encouraging new graduates and the unemployed to participate in the job fairs, the Star said.

“There are so many young graduates and other unemployed who have been discouraged from looking for jobs because they believe there are no employment opportunities available to them,” a labor official said.

In Ankara, Turkish police used tear gas to break up a group of demonstrators trying to cross a police barricade, Hurriyet reported.

May Day celebrations took place at two locations in Ankara after local government officials said they would not allow for a joint celebration.

Hurriyet did not include whether there were any arrests.

In Pakistan, workers and their unions marched in several cities to demonstrate union solidarity, the Associated Press of Pakistan reported.

Pakistan became a member of the International Labor Organization after its independence in 1947.


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Secondary Sources: Government Investment, Policy Uncertainty, Falling Oil


A roundup of economic news from around the Web.

Government Investment: Mike Mandel sees a drought in government investment. “The real problem is government investment, which is down 8.3% since the first quarter of 2009, and still falling. In other words, government spending on infrastructure infrastructure, building, and equipment is declining, adjusted for prices changes. This is just utterly bizarre. In a time when the economy is still sluggish, government investment should be the simplest thing to pump up. We need to modernize our infrastructure and bring government into the 21st century, and it’s just not happening… According to this chart, net government investment is the smallest share of GDP in more than 40 years, and dropping.”

Policy Uncertainty: Timothy Taylor looks at research that aims to shed light on whether policy uncertainty is holding back recovery. “By the time one takes into account the problems of creating an index to measure policy uncertainty and the problems of blending policy uncertainty into a macroeconomic model, I wouldn’t place much confidence in these exact numbers. But at a broader level, the calculations make a strong argument that the effects of policy uncertainty on output and employment have probably been a substantial contributor to the sluggishness of the U.S. economic recovery.”

Falling Oil: Ed Yardeni notes that the rally in crude oil appears to be running out of gas. “That’s good for the US economy. Stable or even lower fuel costs should fuel consumer spending, which cruised along surprisingly well at the beginning of this year despite the surge in fuel prices. Stable or even lower crude oil prices should reduce inflationary pressures around the world. This is especially important in emerging economies since fuel costs account for larger shares of budgets than in developed economies. This would allow the central banks in China, India, and Brazil to continue to ease their monetary policies, as they have been in recent months.”

Compiled by Phil Izzo


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Taxes and Employment

DESCRIPTION

Bruce Bartlett held senior policy roles in the Reagan and George H.W. Bush administrations and served on the staffs of Representatives Jack Kemp and Ron Paul. He is the author of “The Benefit and the Burden: Tax Reform – Why We Need It and What It Will Take.”

Since the beginning of the economic crisis, Republicans have insisted that tax cuts and only tax cuts are the appropriate medicine. They almost never explain how, exactly, this would reduce unemployment other than to say it worked for Ronald Reagan in the 1980s.

Today’s Economist

Perspectives from expert contributors.

If one were to take the Republican argument seriously, the linkage would have to be via the tax wedge. This is the principal means by which the government affects employment, according to the Republican economist Arthur Laffer. The tax wedge is the difference between the cost to an employer of employing a worker and the after-tax reward that the employee receives.

When taxes go up, the tax wedge gets larger, costing employers more to hire workers at a given after-tax wage. Therefore, it is theoretically possible that a tax cut could increase employment by reducing the tax wedge and allowing employers to hire workers at a lower cost without reducing their after-tax wages.

This is a perfectly reasonable theory. There undoubtedly have been times when the tax wedge was increasing because of bracket creep or legislated increases in payroll taxes that may have had a negative effect on hiring. Whether this is the case now, as Republicans assert, is a question for analysis.

One problem with the tax-wedge theory is that taxes are at a historical low as a share of the gross domestic product. According to the Congressional Budget Office, federal revenues will be 15.8 percent of G.D.P. this year. The postwar average is about 18.5 percent, and taxes averaged 18.2 percent during the Reagan administration; indeed, at their lowest point in 1984, federal revenues were 1.5 percent of G.D.P. higher than they are now.

Another problem is that there hasn’t been a significant tax increase affecting average working people since 1983, when Reagan raised the payroll tax rate to 15.3 percent from 13.4 percent (employer plus employee). Contrary to popular belief among Republicans, there have been no significant tax increases during the Obama administration. In fact, there have been tax cuts aimed directly at workers.

The making-work-pay tax credit consumed some 40 percent of the budgetary cost of the 2009 stimulus package and reduced taxes for every person or household with a positive income-tax liability and an income below $75,000 in 2009 and 2010. In 2011 and 2012, the making-work-pay credit was replaced by a temporary 2 percent cut in the payroll tax rate, reducing taxes for every worker.

The reason that unemployment is high clearly has nothing to do with taxes. Consequently, there is no reason to think that reducing taxes further will do anything to raise employment by reducing the tax wedge.

Additional evidence on this point comes from a new study by the Organization for Economic Cooperation and Development on taxes paid by average workers in its 34 member countries. The data below are for a single worker without children.

Organization for Economic Cooperation and Development

As one can see, the United States is a low-tax country with a total tax wedge of 29.5 percent. Three-fourths of O.E.C.D. countries have a larger tax wedge on average workers.

I have also included the latest data on the percentage of workers employed as a share of the working-age population. I think this is a better measure of the health of the labor market than the unemployment rate, which goes up and down for a variety of reasons unconnected to taxes.

Here, too, there is little evidence that taxes affect employment one way or another. Almost half of the countries with a bigger tax wedge employ a larger percentage of their working-age populations than the United States does, and more than half of those with a smaller tax wedge have lower employment ratios.

One argument Republicans could make in response is that the tax system has been in flux for the last 11 years. The Bush tax cuts were all set to expire at the end of 2010 and then were extended at the last minute for two additional years. The making-work-pay credit and subsequent payroll tax cut were also enacted temporarily.

One might reasonably conclude that businesses are unlikely to react to temporary tax changes and need some idea of the long-term tax environment to really affect their hiring actions.

But Republicans designed their tax cuts to be temporary in the first place; they rejected the idea of a bipartisan permanent tax cut because that would have required compromising with Democrats.

The latest Republican tax cut proposal, to reduce taxes for all businesses with fewer than 500 employees, no matter how profitable or big in other respects, would be in effect for only one year.

This is a key reason that the Republicans’ own committee report (see Page 20) said the legislation would have a negligible effect on employment.

There is simply no evidence that cutting taxes at the present time will do anything to raise employment.


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