[quote=dumbrenter]AN, like I told you, I was just speculating. You once again state that it is decreased demand that is forcing them to cut their employee’s time. Which makes sense. But then you make an extrapolation from there to include a causation of taxes which is incorrect. As net income goes down, the tax liability goes down too….reduction of employee’s time is because the employee’s time is not translating to increased top line. Again, not related to taxes.
On a convoluted note, increasing employee’s compensation will actually decrease the tax liability (due to compensation being a deductible expense), but again, no sane person would do it.
I wish your business friends the best, and agree with you that everything gets cut before the take home living expenses; just differ about the cause.[/quote]
I said demand was the cause before. The last year or so, it has been pretty flat. I’m saying, if it stays flat and you increase their expense through taxes, I don’t see why they wouldn’t cut their employee hours some more or cut their wage if they’re not already at minimum wage. It only make sense and you agree that everyone will cut everything else first before they’ll cut their living expenses. Increasing employee’s compensation to decrease tax liability is like saying paying $1 to get 30-40 cents back. That doesn’t make any sense and you agree that no sane person would do it.
I guess everything I’m saying is only extrapolation, since I have no data and I haven’t seen any data for the other arguments as well. We’ll never really what would happen until it happen. Like you and everyone else on here, I’m just guessing. There are SOOO many moving variables in the economy that I can’t say for certain changing one variable will directly affect another. Although, SK, is certain that raising top marginal tax is stimulative.
