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Income Inequality


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3 hours ago, BigRedBuster said:

No...part is paid by the employee and part by the company. 

Again, there's a difference between who's collecting and who's paying. The link above shows that almost all of the payroll tax comes out of the employee income and very little from the company.

 

Thought experiment:

My company deducts my income and pays it the government every paycheck. So is my income tax being paid by the company or by me?

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Ok, I'll try one more time then I'll let it go:

 

https://taxfoundation.org/what-are-payroll-taxes-and-who-pays-them/

 

  Quote

This means that, rather than workers and employers each paying 7.65 percent in payroll taxes, employers send their portion of the tax to the government and then decrease workers’ wages by almost 7.65 percent. Next, workers pay their 7.65 percent share on those wages. In effect, there is hardly such a thing as the “employer-side” payroll tax, because almost the entire burden of the payroll tax is passed on to employees in the form of lower wages.

 

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Just now, RedDenver said:

Ok, I'll try one more time then I'll let it go:

 

https://taxfoundation.org/what-are-payroll-taxes-and-who-pays-them/

 

  Quote

This means that, rather than workers and employers each paying 7.65 percent in payroll taxes, employers send their portion of the tax to the government and then decrease workers’ wages by almost 7.65 percent. Next, workers pay their 7.65 percent share on those wages. In effect, there is hardly such a thing as the “employer-side” payroll tax, because almost the entire burden of the payroll tax is passed on to employees in the form of lower wages.

 

 BS. 
 

companies don’t purposely reduce pay 7.6 percent because of this. 

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29 minutes ago, RedDenver said:

It doesn't matter if it's on purpose or not, payroll taxes drive down employee wages by roughly the amount of the tax. Read the article.

It’s BS. 
 

By this logic, any expense the company has decreases employee pay. 
 

This logic is nothing more than people trying to be creative in ways to demonize employees. 
 

So, according to this, when I pay income taxes, I really don’t pay them....I’m just reducing employees pay. 
 

Again BS. 

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19 minutes ago, BigRedBuster said:

It’s BS. 
 

By this logic, any expense the company has decreases employee pay. 
 

This logic is nothing more than people trying to be creative in ways to demonize employees. 
 

So, according to this, when I pay income taxes, I really don’t pay them....I’m just reducing employees pay. 
 

Again BS. 

I'm guessing you didn't read the article.

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On 2/23/2020 at 11:15 AM, RedDenver said:

If he's trying to say that, then I'll concede the point to him on technicalities, but it doesn't make the original tweet I posted dishonest which is what he said.

@RedDenver Chris Lu who is quoted in the original tweet was in Obama's cabinet and his tweet said these companies pay no Federal tax. That is 100% not true. He should know better. Let the actual facts speak for themselves.

 

To BRB's point I don't remember anything in the article about payroll taxes, or them driving down wages  You will never be able to prove that they do. Companies would just find another way to keep that money and not pay it out if they don't have to. I'm sure they lie and say it impacts what they can pay their employees, but are we really so naive to believe that?

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4 minutes ago, ZRod said:

@RedDenver Chris Lu who is quoted in the original tweet was in Obama's cabinet and his tweet said these companies pay no Federal tax. That is 100% not true. He should know better. Let the actual facts speak for themselves.

 

To BRB's point I don't remember anything in the article about payroll taxes, or them driving down wages  You will never be able to prove that they do. Companies would just find another way to keep that money and not pay it out if they don't have to. I'm sure they lie and say it impacts what they can pay their employees, but are we really so naive to believe that?

What @RedDenver is trying to claim is that trickle down economics actually works.  Lower taxes on companies and that money will trickle down to the employees.

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I think this whole issue is more nuanced than Joe Public really wants to think about. I'm not fully on bored with Bernie's take on wealth and corporate income either, but I recognize that something needs to change.Still there are loops holes and kick backs for various reasons that are beneficial to the economy as a hole.

 

In general I think the corporate tax rate should be raised. I got a one time bonus from my large employer the first year of the tax break, but the following year my bonus went down and I'm not getting any cost of living raises or anything. I think we need to incentives companies to pay their employees better through the tax code, but I'm not sure what that mechanism looks like.

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2 hours ago, BigRedBuster said:

What @RedDenver is trying to claim is that trickle down economics actually works.  Lower taxes on companies and that money will trickle down to the employees.

No, I'm not. I'm saying a payroll tax is passed onto employees instead of coming from company profits because of the asymmetries of the employer-employee hiring relationship. I'm not claiming that rising company profits will raise wages, which is what trickle down economics claims.

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43 minutes ago, ZRod said:

I think we need to incentives companies to pay their employees better through the tax code, but I'm not sure what that mechanism looks like.

This is what needs to be looked at.

 

An interesting idea would be to have a sliding scale of tax breaks depending on average company wage compared to management.

 

Another one would be that you get a tax break if your average wage (not including management)  is above the county average.

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5 minutes ago, RedDenver said:

No, I'm not. I'm saying a payroll tax is passed onto employees instead of coming from company profits because of the asymmetries of the employer-employee hiring relationship. I'm not claiming that rising company profits will raise wages, which is what trickle down economics claims.

Reduce corporate taxes and wages will rise because if you tax the company, they just take it out of the employees paychecks (which is BS).  That's what the article is basically saying.

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