Delete comment from: Captain Capitalism
Bravo, Captain. It looks like you're channeling Bastiat, reminding the idiots of what is seen and what is not seen.
"Obama is talking about raising income taxes. Since employees are a fully deductible cost, at any marginal tax rate less than 100% the tax rate will have no effect on the employer's ability to afford an employee."
Income tax incidence is a matter of the relative elasticity of the employer and employee. While the employer's costs are tax deductible, the employee effectively gets a wage cut and must be offered higher wages to entice him to the same position. Employers are not completely insensitive to labor costs, as you seem to be implying here.
Dec 9, 2008, 2:32:00 PM
Posted to Daddy, Where Do Jobs Come From?