Monday, August 27, 2007

90 percent of the Army's new recruits take $20,000 bonus

My immediate reaction when I read, Many Take Army's 'Quick Ship' Bonus was this was an immediate reflection on our economy when this type of an offer is taken:

Many recruits who take the bonus -- scoring in many cases the equivalent of more than a year's pay -- leave their homes within days, recruiters said. The initiative is part of an effort by Army officials to meet year-end recruiting goals after a two-month slump earlier this year. With the fiscal year ending Sept. 30, the Army hopes the extra cash motivates those interested in joining or entices those just considering enlisting.

Unfortunately, I don't think these recruits are realizing that the $20,000 is taxable, so they are not in reality getting $20,000.00. Nor will they get the money immediately, they have to complete basic training and advanced training first. Which means, some of those signing up and agreeing to leave their homes immediately may have boosted the Army's recruitment numbers but not all of them actually receive the bonus and those that do will see a large chunk of the first $10,000 go to taxes...

1 comment:

Head Spinner Scott said...

I only got a $2000 bonus. Of course it was a time of relative peace. The actual cash I received ended up being just over $1200