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re: Corporate income tax is borne primarily by labor and workers, research shows.
Posted on 11/8/17 at 2:37 pm to HailHailtoMichigan!
Posted on 11/8/17 at 2:37 pm to HailHailtoMichigan!
quote:
Sure, and this is where I get lost in the literature, to be honest. Let's say there are 2 periods, one before the corp tax, one after. I understand why a company can pass on their tax bill to workers in the form of lower wages. What I can't understand in my mind, intuitively, is why cutting the corp tax rate would incentivize them to raise the wages back to what they were before the corp tax was levied.
The theory would be that investors interested in profitability would incentivize the company to use tax savings to increase wages, thus attracting better talent and/or compelling better employee performance, which would also drive profitability. I guess.
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