>Isn't thsi the old Laffer curve crap, more or less undiluted? Note also that payroll taxes come from workers' salaries, not employers' profits,
So how come employers always seem to be so concerned about them? Concern for the welfare of their employees? I don't think so.
In reality, while payroll taxes are nominally deducted from wages, in the context of the labour market system employers are quite aware that their workers take note of their take-home pay, not their nominal pay. Any increase in payroll taxes would be met with a demand for increased wages to compensate workers and vice-versa.
> so that even of such taxes were elimunated, employers would have no more profits to invest, assuming of course that theyt would invest them.
Employers would be able to claw back the effective wage increase over time. So a cut in payroll taxes would flow into profits.
> The proposal is just a veiled way to further undermine what is left of the welfare state in this country. jks
Probably. Though reducing government expenditure is only one option, the other being to make up the shortfall elsewhere. Different sections of the employing class are effected differently by different tax mixes, those with a higher proportion of direct wage costs would benefit from such a change. Some employers will suffer more adversely from welfare cuts. Its a jungle, but as a general rule of thumb the capitalist class pay all taxes.
Bill Bartlett Bracknell Tas