Why Government Efficiency Matters for Taxpayers

What did you get done this week?” That’s the question Elon Musk and the newly formed Department of Government Efficiency (DOGE) are posing, and it’s driving Democrats and left-leaning folks into a frenzy. This is a common-sense question that every responsible, working, tax-paying American should be asking of every elected official and government employee at every level. Frankly, I’m disgusted by how these people label themselves “public servants” while not only drawing a paycheck but also enriching themselves and draining our country dry. To me, that’s a form of treason, betrayal, and conspiracy. Efficiency isn’t optional, it’s a necessity.

As a business owner, I can personally vouch for the fact that most employees have little grasp of what it takes to run a profitable operation. They often fail to understand that for every dollar they earn, they need to generate far more revenue to cover their wages and the associated costs of employing them. Government is no different: employees must be productive, efficient, and accountable for delivering measurable savings or contributions to the nation’s sustainability and prosperity. A government worker should contribute to the gross domestic product just as much as anyone in the private sector. We need to rally behind Trump’s efforts through DOGE to get our country running like a well-oiled machine

To determine how much revenue an employee paid $15 per hour would need to generate for a business to break even, we need to consider not just their hourly wage but their total cost to the employer, including overhead, taxes, benefits, and other administrative expenses. While the exact figure depends on the industry, business size, location, and specific cost structure, we can estimate a general range based on typical U.S. business practices as of February 22, 2025.

First, let’s calculate the employee’s true cost to the business. The base wage is $15 per hour, and assuming a standard full-time schedule of 40 hours per week for 52 weeks, that’s 2,080 hours annually, or $31,200 per year in wages. However, the fully loaded cost of an employee—wages plus additional expenses—is commonly estimated to be 1.25 to 1.4 times their base salary in the U.S. This multiplier accounts for:

  • Payroll taxes: Employers pay about 7.65% of wages for Social Security and Medicare (FICA), plus federal and state unemployment taxes (typically 0.6% to 6% depending on the state and experience rating).
  • Benefits: These might include health insurance, paid time off, and retirement contributions, averaging around 20-30% of base wages if offered (though not all small businesses provide extensive benefits).
  • Overhead: This includes rent, utilities, equipment, and administrative costs allocated per employee, which varies widely but can add another 10-20% or more depending on the business.
  • Recruitment and training: One-time costs amortized over time, often adding a small percentage annually.

Using the 1.25 to 1.4 multiplier, the annual cost of this employee would range from:

  • 1.25 × $31,200 = $39,000
  • 1.4 × $31,200 = $43,680

Let’s take a midpoint of about $41,340 per year (roughly $19.88 per hour) as a reasonable estimate for the fully loaded cost, assuming modest benefits and overhead typical of many small to medium-sized U.S. businesses.

Now, breaking even means the employees’ work generates enough revenue to cover their total cost plus a share of the business’s general operating expenses not directly tied to their employment (e.g., management salaries, marketing, or debt service). A common rule of thumb in business is that employees need to generate revenue equal to 2 to 3 times their base salary to account for these costs and keep the business viable. This varies by industry—service-based businesses with low material costs which might be closer to 2×, while manufacturing or retail with higher overhead might require 3× or more.

For simplicity, let’s apply this 2× to 3× range to the base wage of $31,200:

  • 2 × $31,200 = $62,400
  • 3 × $31,200 = $93,600

Per hour (over 2,080 hours), this translates to:

  • $62,400 ÷ 2,080 = $30 per hour
  • $93,600 ÷ 2,080 = $45 per hour

However, since the fully loaded cost ($41,340) is higher than the base wage, the revenue needed could be adjusted upward. A more precise approach is to consider the fully loaded cost plus a profit margin, but for pure break even (covering all costs without profit), the employee needs to generate at least their total cost of $41,340 annually, or about $19.88 per hour. This is unrealistic as a standalone figure because it ignores the broader business expenses beyond the employee’s direct cost.

A better estimate comes from industry benchmarks. For many U.S. businesses, payroll averages 15-30% of gross revenue, with overhead and other costs taking up another chunk. If payroll is, say, 25% of revenue, and this employee’s $41,340 is the only labor cost (a simplification), the business’s total revenue would need to be:

  • $41,340 ÷ 0.25 = $165,360 annually, or $79.50 per hour.

This suggests the employee must generate significantly more than their cost to support the business ecosystem. Splitting the difference between practical rules of thumb (2× to 3× base) and accounting for fully loaded costs, a general range of $30 to $45 per hour in revenue—equating to $62,400 to $93,600 annually—is a reasonable ballpark for break-even in many U.S. contexts.

So, broadly speaking, an employee who paid $15 per hour would typically need to generate $30 to $45 per hour in revenue for the business to break even, factoring in overhead and general administrative costs. This range flexes depending on whether the business is lean (closer to $30) or has higher fixed costs (closer to $45). For a more precise answer, you’d need to know the specific industry and cost breakdown, but this gives a solid starting point for the average U.S. business.


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