CA renter, you’re assuming that all employees are productive. What make you think the other companies down the street won’t do the same thing? Why do I see all these company laying off right now? Is it not because the company’s PROFIT is going down? PROFIT is after tax/expense/etc. So if you increase their cost, their profit goes down. This won’t be just one company doing it. If majority of company feel their profit squeezed, they’ll squeeze their employees first.
Lets assume a company have 10 employees, 5 are extremely productive and 5 are mediocre. The company profit get squeezed due to higher taxes, etc. If I run that company, i’d cut some of the mediocre people, and distribute some of the $ I saved from those mediocre employee to my productive employee. That way, my stars will be even happier and my profit stay the same or improve. What I just described is not new. Why do you think companies have layoffs?
What you also fail to see is this is a global economy now. Why do you think they’re outsourcing a lot of our jobs? Increasing their cost is not going to bring back any jobs. If anything, it’ll drive away more jobs.
BTW, I’ve lived in a communist country, so I know a little something something about “equality” for all. That’s why I love this country.
