I am just flabbergasted that PA's governor wants to slash 1 billion of education funding, but impose absolutely no taxes/fees on natural gas frakkers. I know that he claims that it will 'create more jobs' but frankly that's bull. Those companies will hire workers regardless of whether they have to pay taxes or fees. Its not like they can effectively harvest the natural gas in another state, its in PA, so why not get something for it?
I'm tired of hearing businesses complain that their taxes are too high (hello GE who got a 14million refund). I've never run a business, so maybe this is incorrect. But aren't the wages paid to workers tax deductible as a business expense? Has anyone thought that perhaps if businesses paid their employees more, perhaps give them the same percentage of raises and bonuses given to executives, that their tax burden would be less? Then any tax hikes on those businesses won't actually affect them (much).
Maybe the reason maybe why businesses started complaining so much about what they paid in taxes is because they stopped increasing their workers' pay in the 70s and thus had less tax deductions and more 'profit' that was being taxes. Go back to increasing worker pay to meaningful levels and lower your tax burden.
Plus, those employees who now make more money can spend that money and increase their "consuming." That will then create even more jobs, which will make businesses grow and hopefully earn more money for everyone. More profits for the execs, more employees getting better wages, able to spend more, requiring businesses to hire even more workers. More people can afford to buy homes again and will want to, because their employer needs them to stick around and pays them well.
Win win for everyone. Yeah, maybe those execs/stockholders won't be super super super rich, maybe they have to just settle for super super rich. Is that so bad?
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3 comments:
If you hike taxes on any company or corporation, the net effect is an increase in the price(s) that they charge the end consumer.
They are not going to cheerfully "absorb" any cuts to their profit margin. They will pass along the costs, and eventually it's you and I who end up paying them.
That's why I recommend that businesses should increase worker wages, so they can 'deduct' the extra that would have been a tax hike and thus their taxes won't really increase, but worker spending will, which is beneficial to all.
Businesses aren't going to increase wages unless they encounter a situation to where they need more workers to turn out more product, which will only happen if there is a demand for that product.
Also, I don't think wages are deductible from corporate income taxes. If that were the case, not a single dime in corporate income taxes would be collected as that payrolls would mysteriously match the tax liability.
And, every time the minimum wage goes up, I've noticed the prices at fast food places rise commensurately.
There's also the fact that workers in Mexico and China are willing to do the same jobs for a lot less money than workers here are, which is, I think, the principal reason why we've lost manufacturing jobs in this country.
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