There’s little evidence that corporate tax cuts create jobs

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When President Donald Trump travels to Springfield, Missouri, on Wednesday to stump for tax reform, he’ll rely on a well-worn argument that giving businesses a tax break will create more jobs.

But while the argument sounds compelling, there’s little evidence to back it up. And a new analysis from the Institute for Policy Studies, a left-leaning Washington, D.C., think tank, throws more cold water on the idea.

Supporters of cutting corporate taxes argue that those savings would free up more capital for investment, allowing companies to expand operations and hire more workers.

That was the argument then-candidate Donald Trump offered last year when he proposed “reducing taxes tremendously” for both small and big businesses.

“That’s going to be a job creator like we haven’t seen since Ronald Reagan,” Trump said in the first presidential debate in September 2016. “It’s going to be a beautiful thing to watch. Companies will come. They will build. They will expand. New companies will start. And I look very, very much forward to doing it.”

But the evidence for that outcome is slim, according to the Institute for Policy Studies analysis.
To test the claim that corporate tax cuts create jobs, the group looked at the payroll changes at 92 publicly held U.S. corporations that posted profits every year from 2008 through 2015 and paid less than 20 percent of these earnings in federal income tax.

That’s less than the top 35 percent tax rate that is the target of supporters of corporate tax cuts. Companies pay less by claiming a wide variety of deductions and exemptions, similar to those available to individual taxpayers.

The researchers relied on companies’ public accounting statements to calculate the amount of taxes paid and on company and news reports to assess changes in payrolls.

What they found was that more than half of these lightly taxed companies actually shed jobs during the period when the overall economy boosted payrolls by 6 percent. Of the 92 companies studied, the median change in payrolls was minus one percent.

Where did the tax savings go? Many of the companies on the list used the free cash to buy back stock, helping to boost the price of their company’s shares. The top 10 job-cutters each spent $45 billion in stock buybacks over the 2008-2015 period, a pace six times that of the S&P 500 corporate average, according to the researchers.

The review also found that CEO pay among the 92 companies rose 18 percent during the period, compared with a 13 percent increase among S&P 500 CEOs.

While the review is not scientific, the conclusion that corporate tax cuts don’t create jobs is backed by other economic research.

In 2014, New York University economists Alexander Ljungqvist and Michael Smolyansky analyzed differences in state corporate tax rates and found that they had little impact on job creation.

“We find little evidence that corporate tax cuts boost economic activity,” they found, “unless implemented during recessions when they lead to significant increases in employment and income.”

Other economic research has found that cuts in individual tax rates can help boost growth and create jobs — as long as they don’t boost federal borrowing to make up the difference.

Congressional Republicans favor deep cuts in both corporate and individual tax rates, but there is less consensus on how to pay for the lost revenues without adding to the national debt. The difficulty in striking that balance has, for decades, thwarted multiple efforts at overhauling the complex U.S. tax code.

The latest effort to cut corporate taxes will rely on generating popular support for the idea, which is one reason proponents insist it would create jobs. But the historical evidence is slim, according to Cornell economist Karel Mertens and University College London economist Morten Ravn.

In 2012, they looked at the impact of changes in U.S. tax policy since World War II, including both personal and corporate tax rates.

While cuts in personal income taxes helped boost employment, investment and consumer spending, the same was not true for cuts in corporate taxes. Lower business taxes did help boost production but didn’t lead to much new hiring, they found.

“In contrast to the personal income tax cut, there is no evidence that a cut in corporate taxes is associated with any significant impact on employment, despite the considerable and significant immediate increase in output,” they wrote.

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After Brexit, who will do all the jobs?

British businesses are struggling to fill job vacancies, which are near historic highs. That’s why immigrants have become a so important to the UK economy—taking up millions of jobs in the country’s vital service sector, in particular. If this steady flow of workers was restricted, it would be a nightmare for employers.

When Brexit is scheduled to take effect in March 2019, the British government is planning to stop EU citizens from being able to live and work in the UK without visa requirements. As the EU and Britain’s third round of divorce talks begins, a range of industry groups and business owners highlighted how this could create staffing problems.

Manufacturing firms, which account for 45% of all UK exports, report an increase in EU nationals leaving their companies before Brexit becomes official. Britain’s manufacturing and engineering trade body EEF warned that this is likely to lead to a recruitment crunch because two-thirds of firms say they have to hire EU nationals because there are not enough Britons applying for jobs. In addition, a third say they hire workers from elsewhere in the EU because Britons don’t have sufficient skills.

This is not an isolated example, with employers from farmers to professional service firms sounding off about how restrictions on EU workers will hurt their industries.

Given the UK’s aging population, its workforce is growing only because of immigration, according to Mercer. In the year to March, 143,000 UK-born people left the workforce due to retirement, emigration, or other reasons, offset by the entry of around 147,000 EU-born workers over the same period. But since the Brexit vote in June 2016, net migration to Britain has slowed.

Some sectors in the UK will be hit harder than others by this, according to Mercer’s estimates. EU nationals registering as nurses for the National Health Service dropped by 92% between June and December last year.

The construction industry will also feel the pain—Mercer says the sector will need to recruit 1.5 million workers to replace the workers now approaching retirement. In London, more than half of construction workers come from outside the UK.

Meanwhile, a recent report by Markit and industry body the Recruitment and Employment Confederation (REC) said that companies are finding it hard to fill both permanent and temporary vacancies in core service-sector jobs.

“Employers are not just struggling to hire the brightest and the best but also people to fill roles such as chefs, drivers, and warehouse workers,” said Kevin Green, CEO of the REC. “Financial services, a crucial part of the London labour market, are not hiring in their usual quantity as the uncertainty caused by Brexit makes them hesitant.”

Beyond uncertainty about business prospects, the availability of skills, and other factors, pay is an issue that often comes up in debates about how to entice more Britons to take up jobs that immigrants often fill. But even offering above-average wages for some jobs isn’t enough to attract Britons to take up certain vital but difficult jobs (paywall). The hope for employers, then, is that Brexit talks result in less disruptive restrictions on workers from the EU, or robot technology advances quickly enough that machines can step in to do the jobs of immigrants and locals alike.

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Recruiter’s Advice: Ways to avoid career damage

Navigation of the career can be a difficult business. A single career mistake and it can make a bad impact on your professional goals.  There are some of the simple ways that can help you to avoid those career related blunders.

By avoiding such mistakes and having a focus on your work with passion, you will certainly be able to navigate a successful career for yourself.  All of us want to do well at the jobs we do and we also want to grow in our careers but there are some behaviors and tendencies that can hold us back.

Here is the list of things that you need to avoid while looking to excel at your workplace:

Job certainty is a myth: There is no job that is secure as it can easily be replaced by some other professional. You need to first accept that and then move on with it. Always do you best and make sure that you don’t do over analyzation of the meetings that your boss have with you or without you.  Don’t also think that any mistake that you make it will make you lose your current job.

You should always have your up-to-date resume and go for confidential interviews. You also need to keep your ears and eyes open to grab the opportunities that come your way.  It is good to be loyal to your current employer but you need to be loyal to your own-self first. So, be open to changes always!

Not in the habit of taking credit for the work you do: No one likes a person who brags about his own success although devaluing your own role at the time of getting success is certainly a better way to stunt the career growth. Modesty is always appreciated but you should not feel embarrassing about taking the credit where it is due. By doing this, you will also get the recognition from the management for your contribution and this gives them a factor about you that will work t time of increments and promotions.

When you don’t see the bigger picture:  It is necessary to understand that what exactly your company wants to achieve and how do you fit in and will you be able to contribute to overall success of the organization. With a broad understanding and recognition of the goals of the organization will give you a deep sense of passion and purpose of for the job you do and thus you will also be more successful.

Too much apologizing: Own your own success; you don’t have to seek permission for it. There are instances when many professionals often fall into the habit of not disrupting and disturbing anyone and this makes them apologetic and timid as well. The employees who are very timid get into trouble and they don’t get things done easily and they are the ones that are dragged by the supervisor also. Always remember that why you were hired for the job and in case you make any mistake then own it.

When you don’t follow your intuition:

Your gut feeling and intuition is certainly a system that is tuned finely. There have been many stories of people that work as per the gut feeling and if they ignore it then they end up regretting in the later stages. If you are also in the habit to neglect your intuition then you are actually ignoring the wisdom that you have gathered in so many years of your life.

 

 

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Tips for post job-interview

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If you have been looking for a job and for that purpose you are in touch with a recruiter to find the best career opportunity and your resume is updated and set to the companies , your interview date is about to come, then you better be prepared beforehand so that you can crack it easily in a go.  Once you do all the research about the company and you feel that you are prepared for the other round, then what happens later?

You will get much advice on how you need to write your CV and how you should prepare for the interview but not much advice is given for the later stages. In this piece of writing, you will get some very useful tips that will help you to go through the later stage of the recruitment process in a company.

Once you have given the interview then you may start to analyze or rather over analyze that how it went, you may start thinking that you didn’t say something that you planned or due to the rush in your nerves, you said too many things. It is actually easier said than doing it, rest assure that you have actually done more than enough. It might be possible that you actually felt a way too nervous than you expected; you may feel that you could have done better, it is normal and expected that you will critique that how the interview went.

Here are some of the tips for post job interviews:

Contact the recruiter with whom you have been working to get the job: You should not consider contacting the client directly to know about the feedback, as this is the job of the recruiter who sent you there for the interview. The recruiter works as a mediator between you and the client and it basically allows a single line that is involved in between the hiring process. This also helps in minimizing the risk of any kind of misunderstanding. The recruitment consultant knew to handle the entire process so you need to trust them. You should talk to your recruiter and let them know that how the interview went and if you can also ask any question that you need to get an answer for. Also, try to seek feedback in depth, both the positive and the negative points as this will certainly help you in later interviews that you may give.

Always agree to a timeline: While talking to the recruiter after giving the interview, make sure that you agree to a timeline for the time when the recruiter can confirm the results of the interview. This will also make you relaxed as you will be aware of the date of the decision related to your job.

Send a thanking email: You should also send an email to the client for holding the interview and giving you time also CC this mail to the recruiter so that they are aware of this communication between you and the client. Thanking the clients means that you are showing your respect for the time they have invested in taking the interview.

Contact the recruiter if they don’t get back to you on the agreed timeline: Once the date has come when you were supposed to hear from the recruiter to inform you about the feedback but if you don’t get any reply from the recruiter’s side then after a day or two contacts the recruiter. There can be several reasons why you didn’t hear from the recruiter and it is always better to know that what the issue is. Then recruiter will be able to tell you the feedback after contacting the client on your behalf.

Thank the recruiter: It doesn’t matter that you get the job or not but make sure that you thank the recruiter for their efforts as there is a lot of time and efforts that go into the entire recruiting process starting from finding the company that suits your needs. If you are chosen for the job, then also there is a lot of backend work that is done by the recruiter including documentation and the requite tests that you have to go through.

It is important to have transparent and effective communication with communication with the recruiter as they are the ones who are involved in all the stages of the interview. If you have any questions then you can always feel free to contact the recruiter.

.Have you ever dealt with a recruitment agency to get a new job? How was your experience? Was it good or bad? If you have never used any recruitment agency then would you consider using it now? We would love to hear from you.

If you are looking to get a new job in engineering, property or construction sectors then our recruiters will be always to help you or in case you want to become a recruiter then we would be happy to hear from you.

 

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Tenneco Australia cuts up to 70 jobs at Monroe shock absorbers plant

 

Up to 70 jobs will be axed at the Monroe shock absorbers plant at Clovelly Park in Adelaide’s south, as the car industry winds down ahead of the closures of Holden and Toyota.

Tenneco Australia’s decision comes just weeks after it announced the closure of the Walker exhaust plant at O’Sullivan Beach, costing another 128 jobs.

At the time, the company indicated Monroe jobs would not be affected, but today said it has only had “limited success” with attempts to diversify.

“Some restructuring will be necessary to ensure the future viability of the plant,” it said in a statement.

“The downsizing will result in the loss of up to 70 jobs.”

The decision means more than a third of the workforce at the factory, which currently employs 200 people, will be slashed.

“We sincerely regret the impact of today’s announcement on our employees and their families,” plant manager Pat Larobina said in a statement.

“The decision to downsize is not related to employee performance but to factors outside of our control.

“We appreciate the dedication and hard work of our team members.”

Workers offered support by State Government

The Clovelly Park plant is located near the former Mitsubishi manufacturing site at what was once a major automotive hub.

The Holden factory at Elizabeth in Adelaide’s north will close after October 20.

The components industry employs hundreds more people in South Australia, and there are fears the car industry shutdown could cost up to 12,000 jobs in total.

Toyota will also cease manufacturing at its Altona plant in October.

Tenneco said the plant would continue to produce suspension products “for aftermarket and export customers”.

Automotive Transformation Minister Kyam Maher said the State Government would work with affected employees to help them find new jobs.

“The State Government is committed to supporting automotive supply chain companies and their employees to successfully transition beyond the car manufacturing industry,” he said.

“We have already held information sessions with Walkers and will have State Government representatives at the site next Tuesday, to work with the company to ensure all workers can access support.”

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Citizens Advice reveals top five botched building jobs

As many as 40,000 householders sought help from Citizens Advice last year on home improvement jobs, mostly for shoddy workmanship.

Roofing and fitted kitchens were the worst offenders, attracting nearly 5,000 complaints each.

In one case, a builder failed to finish work on the roof, leading to thousands of pounds’ worth of water damage.

In another typical example, a kitchen contractor disappeared, leaving no doors on the cupboards.

The top five building jobs which caused problems were:

  • Roofing – 4,971 cases
  • Fitted kitchens – 4,766 cases
  • Fitted windows and doors – 3,879 cases
  • Plumbers – 3,210 cases
  • Driveways, patios and decking – 3,116 cases

“People trying to improve their homes are finding them in a worse state than before they started,” said Gillian Guy, the chief executive of Citizens Advice.

“Dealing with botched jobs and unfinished work means many are left out of pocket and face huge disruptions to their lives.”

 

The charity is advising householders to get references before hiring a builder, to find out if they are a member of a trade body, and to get written quotations and contracts.

If things do go wrong, and the builders are not co-operative, consumers should consider using an Alternative Dispute Resolution (ADR) scheme, said Citizens Advice.

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Being A Great Negotiator Starts With Becoming More Aware

Setting up a business deal requires time, patience and some steady nerves. Perhaps you’re talking with a client about establishing — or expanding — your services at their firm. Perhaps you’re sitting down with fellow partners, trying to chart a course for the business. Everyone has ideas. Everyone has wants. You just need to negotiate.

Besides the usual research and planning that goes into a deal, there are other ways to prepare yourself before you sit down at the table. Below, members of Forbes Coaches Council talk about those key skills, qualities and tactics, as well as how they can help you. Here’s what they advise:

Members of Forbes Coaches Council share the top tactics of every skilled negotiator.

1.Face, And Clear Away, Any Personal Baggage

The late Jim Camp, author of Start with No, taught me that one of the steps in negotiation that’s often missed is to face and clear any personal baggage that we have when we come to the table. We often have hidden agendas that need to come out into the open before we can make progress. – Sandi Leyva, Sandra L Leyva Inc.

2. Identify Your End Goal

Get clear on what you want to accomplish throughout the negotiation process and your desired outcome. Do you want a win-win outcome? A collaborative process? What about your end goal? Is it negotiable? How so? The more clear you are in the beginning, the easier it is to negotiate not only for what you want, but also you’ll be able to list out the facts to support it. – Gina Gomez, Gina Gomez, Business & Life Coach

3. Build Trust

Trust is a critical foundation of any successful relationship. Negotiations start well before you even meet at the table for the discussion. Build credibility, act honestly and show genuine interest with others. This will create more opportunities for the desired result for both parties. – Alan Trivedi, Trivedi Coaching & Consulting Group

4. Develop Your Perception And Persuasion Skills

Effective negotiation involves a blend of communication and persuasion skills. You can’t negotiate if you don’t know how to persuade. Persuading involves being able to influence others to achieve your goal. You need high levels of perception and good influencing skills to negotiate successfully. – Dr. Corinthia Price, WorkforceCareerReadiness™

5. Listen Carefully, Then Restate The Points

The more effectively you can listen with optimism, the greater your opportunity for success in a negotiation. Hear your counterpart without interruption. Be aware of emotions, body language, and tone of voice to get the full picture. Then restate their key points to their satisfaction before making your own. It’s not a competition against them: It’s an opportunity for you to both get what you want. – Hayward Suggs, Commonquest Consulting

6. Find The Core Value That You Can Align Towards

In negotiations, you want everyone at the table to leave feeling like they got what they wanted. You don’t have to agree on everything — in fact, many solid partnerships and relationships thrive on an appreciation of each others’ differences. Find the core value that you can align towards, and work out the details once you find the outcome that serves everyone best. – Karen Pery, Karen Pery Coaching + Consulting

7. Learn What Matters Most

Learn about what matters most to the other person. Be curious to find a way where you can both win. In Negotiating with Giants, Peter D. Johnston shares an example: Two people are fighting over an orange. Before cutting it in half, we learn one wants the rind for baking and the other wants only the juice. There is often a way for each person to get most of what they really want. – Susanne Biro, Susanne Biro & Associates Coaching Inc.

8. Weigh All Options, And Be Flexible In Your Communication Tactics

Yes, you want to “win,” but what if what your counterpart is suggesting can make your win larger? Don’t go into negotiation conversations ready to prove a point or to shut the other party down. Weigh all options, and be flexible in your communication tactics. – Maleeka T. Hollaway, The Official Maleeka Group, LLC.

9. Know Your Non-Negotiables To Negotiate Well

When you are clear on what your non-negotiables are, you can engage in productive negotiation. If you have not clearly determined your own non-negotiables, the process won’t feel strong, and you won’t feel confident. By knowing exactly what your non-negotiables are, and sticking to them, you and the other party are more likely to successfully get what you both want. – Kiran Gaind, The Connected Family

10. Get Comfortable With Silence

Silence can be the result of listening, thinking or waiting out the other party. Too many people lose in negotiations because they are uncomfortable with a pause and move forward too fast. Use the “power of the pause” to make a point or to consider the scope of discussion. It actually is a sign of strength versus weakness when you can control your natural impulse to talk. – LaKisha Greenwade, Lucki Fit LLC

11. Know Your Walk-Away Point

Sometimes, the other side in a negotiation may have unrealistic expectations that are set in concrete. In any negotiation, you need to have options to be flexible for reaching agreement. But, knowing your limits is a critical skill — to recognize when it is time to “pull the plug” and walk away. Examine your options carefully, but recognize when no deal is a better result than a bad deal. – Susan P. Joyce, Job-Hunt.org

Source : Forbes