- The Washington Times - Thursday, January 1, 2009

ANALYSIS/OPINION:

Surely I am not the only concerned citizen who recognizes that the budget crisis is not going to be resolved without massive government employment and budget cuts. A recent radio segment stated that “the average annual federal worker’s compensation, pay plus benefits, is $106,871 compared to just $53,288 for the private sector, according to the United States Bureau of Economic Analysis.”

I contacted the reporter and was given the link www.federaljobs.net for verification. This is an outrageous example of how government is forcing our states and nation into financial disaster. The simple fact is that all compensation for government employees comes from the taxes paid by public and private companies and their workers. This includes all of the taxes paid from government-job wages as well as any “fees,” licenses, fines, etc., that a public employee (with no other income stream) pays.

Citing the compensation averages above, if a nominal federal income tax of 25 percent is calculated against the private-sector worker ($53,288 x .25), the average tax collected is $13,322. If the average federal-worker compensation is divided by the private taxpayer’s average ($106,871/$13,322), the result is slightly more than 8. This means it requires all of the income taxes paid by eight private-sector employees to pay the compensation of one public employee (and this does not take into account any of the other government spending for programs, projects and so forth). I have not yet located similar statistics for the state of California, but my guess is that there is a similar ratio between private-sector taxpayers and California public employees. It is evident to me that it follows that for each private job lost there should be a reduction of eight federal jobs plus whatever the corresponding state job ratio may be.

I realize this is a very tough decision; but for the first and only time in my company’s 39-year history, we have had to furlough several outstanding team members. However, with declining revenues from the loss of private jobs, falling real estate values and falling consumer spending, there is no solution other than budget reductions.

JEFFREY L. MOCK

Ranchos Palos Verdes, Calif.

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