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re: Corporate income tax is borne primarily by labor and workers, research shows.
Posted on 11/8/17 at 2:47 pm to HailHailtoMichigan!
Posted on 11/8/17 at 2:47 pm to HailHailtoMichigan!
quote:
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 missing element in both periods is the consideration of whether the employer can get away with passing the tax onto lower wages (and whether they can survive the tax if they can't do that), and whether they can get away with holding on to a windfall from a tax cut
the condition that would bind them would be a truly competitive labor market, as the article brings up. is that market efficient, or is there evidence that one side holds more market power than the other? if one does- say the employer (labor demand side)- you will see marginal cost of an employee (wage) diverge from marginal benefit, tilted in the favor of the corporation
this possibility is why you see libs posting charts like this :
This post was edited on 11/8/17 at 2:49 pm
Posted on 11/11/17 at 6:51 pm to 90proofprofessional
quote:the productivity argument is stupid because it presumes it's the employees that became more productive which is patently false. Everytime I see the productivity argument put forth I know that I'm looking at somebody who doesn't understand what the hell they're talking about
90proofprofessional
This post was edited on 11/11/17 at 6:52 pm
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