10% rise in revenues needed to boost jobs


Kirwan
Kirwan
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Corporate deal-makers surveyed last week said it would take an average 10.6 percent increase in revenues for their businesses to add employees.

Also asked which tax cuts would most likely spur an increase in headcount, they ranked cuts in corporate federal income taxes and a cut in the employer contribution for Social Security and Medicare at the top.

The Association for Corporate Growth North Florida Chapter surveyed members and guests attending its Thursday meeting at The River Club Downtown.

Almost 60 members attended and 15 completed the survey forms.

“ACG members believe that revenues will need to increase significantly in order for them to increase their hiring,” said group President Michael Kirwan, a partner in the Foley & Lardner law firm’s Jacksonville office.

The survey asked that if business revenue remains constant, which taxes, if cut, would likely spur an increase in business headcount, with 1 considered most likely and 6 as least likely.

The responses:

• Federal income tax (corporate) — 2.4

• Employer contribution for Social Security and Medicare (FICA) – 2.75

• Federal income tax (personal) — 3

• Federal unemployment tax (FUTA) – 4.4

• State unemployment tax–4.6

• State corporate income tax rate — 4.8

“It should be noted that there were many comments that noted that they believed that no tax cut would trigger any increase in employment if revenues stay constant,” Kirwan said.

The North Florida chapter has 85 members in the categories of private equity professionals, investment bankers, attorneys, auditors, accountants, lenders, corporate development officers, company leaders and other financial professionals.

Kirwan expects to survey the group each month about economic and financial trends.

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