gila bessarat-waels

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On October 20, 2017, gila bessarat-waels commented on 4. Should Companies “Care” About Job Growth? :

I think companies should have a tax incentive to create new jobs. Moreover, in addition to the usual financial statements companies I believe that companies should provide detailed information about the types of jobs they have created and destroyed each year. This focus on job creation (more reporting, and with a tax incentive), may help companies to change their mindset from job destroying innovations to job creating innovations. The tax incentive should also focus on real new jobs created by organic growth which is different from increasing the number of employees by acquiring a competitor.

Making this happen would be very complicated for various reasons. Should we provide a tax incentive only for the direct jobs created by a company or should we also take into account indirect job creation ? Should we provide a tax incentive for jobs created domestically or for all jobs created ? (Doing so for domestic jobs only may not be aligned with WTO rules). Politically, I doubt it would be easy to implement in the US because campaign finance laws give too much influence to special interest who have a purely financial interest and no real motivation to create jobs.

That said, regardless of the complexity of this change, I believe that it is necessary because we are moving towards a world where not enough attention is given to job creation. This is not sustainable and will create more and more political instability, protectionism, and wars, if not addressed properly.

Since companies will not change their behavior unless it pays to do so (less tax, or a better image), I believe that a tax incentive and a stronger reporting on job creation is necessary.