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Joined 6 months ago
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Cake day: March 1st, 2024

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  • …so lower income earners can get bumped up into a higher tax bracket?

    Small employer, where they will actually feel this, sure. Might work. Might put them under too, but that doesn’t matter since corporations do their best to crush the little guy. And for them, when you multiply that “just a dollar” by the number of hours worked, across all employees, and the bigger bumps that executives will then demand, that shows up as red on next year’s ledger. And once again, hours get slashed, benefits get cut, jobs get lost to automation…

    The ripple effects of taxing companies, increasing labor costs, and the costs of compliance and litigation, real or frivolous all wind up hurting the little guy. You seem to think a corporation will just take it and move along with their tail between their legs, but they don’t. They always find a way around it, through all the things I’ve already stated. And throw in legal tax loopholes, lobbying and subsidies.


  • And the cost of raising the minimum wage kicks off the cycle of increasing costs, which in turn gets passed off onto the customer, or reduced compensation / hours for workers, or any number of other cost cutting measures. I’m not sticking up for them, just saying what will happen in that case. Sad, but true. They will always find a way to shift those costs or the company will likely eventually fail, in turn losing all those jobs, whether that’s due to being priced out, major drops in investors, etc. It’s a huge shit sandwich, and, unless you’re at the top, we’re all forced to take a bite.




  • Pretty sure you’re thinking I’m supporting the “companies”. I’m not. Their sole purpose is to make money, be it for the ownership, board, or investors. Regardless of how you feel about that, it’s “real world” economics. , Raising taxes on them comes with consequences, we need to be honest with the ripple effect it causes. The board, shareholders, ownership, etc isn’t going to just “take it” and lower their own compensation. They will lower their costs to compensate, in the form of reducing hours, lowering quality of their product, raising prices on their product, lowering other compensation provided to employees, drastic cuts to their workforce, contracting workers, even famously “giving you less chips in a bag” for the same price. Companies will only willfully raise wages when the alternative is to be pushed out of lucrative markets.

    Nothing about economics is “basic”.