“President Barack Obama will ask Congress on Friday for authority to close the Commerce Department and create a new export agency, an overhaul that could save $3 billion and help inoculate him against Republican election-year charges that he is a big-government liberal.”
Tell him to close HHS, Dept. Of Ed., EPA, and HUD along with it, and we’ll think about it...
What is amusing is that the proposed budget for the new agency isn’t mentioned. Also, why create a new export agency unless he plans on the new agency being largely answerable to him.
As a life-long bookkeeper, I can assure you all that closing one entity & opening another to ‘save money’ rarely does such.
You are discarding expensive stationary, logo identities, laying off people who will drain your unemployment accounts & put you into a higher bracket with the new entity.
The new entity must create it’s logo ID, print all new invoices, stationary, business cards, etc. They must paint new colors on buildings. They must change over titles on all vehicles. They must change over leases on any leased equipment. They must change over all bank accounts. They must change over all rental & lease agreements on buildings, etc. Some of such changes could include penalties.
They will automatically be put into the highest bracket for state unemployment costs as a new entity. They will have legal costs in filing state & Federal papers for the new entity. The accounting records will have to produce double the payroll records for the year, as employees will have worked for 2 different entities. They will be paying lawyers & accounts to complete all this changeover.
None of this is cheap-—Any savings will have to take at least a couple of years to manifest themselves.
Anytime Barry the Imposter says he will save us money, grab your backsides. You are about to get shafted even more!!!!