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scotty79today at 2:17 AM2 repliesview on HN

People tend to think that income taxes lower your salary. While in practice employers know exactly for how little money (in hand) you are willing to work and in absence of income taxes would just pay this much less so that your money in hand is the same.

As an employee you should fight for income taxes to be as high as possible since they are neutral for you and might fund useful things for all. When left in the pocket of your employer they just become their takeaway. Employers won't spend it on improving the company if they don't have to. And the only things that force them to spend money in a predictable manner is regulation and markey opportunity to earn more. When they have those needs they mostly do it with credit anyways.

Conversely as an employer you should advocate for lowest income taxes possible for your workers.


Replies

rahimnathwanitoday at 2:30 AM

You're suggesting that 100% of the income tax burden is shifted from employees to employers.

The incidence of taxation (which party bears the burden of the tax, irrespective of who 'pays' it) is widely studied. As it relates to payroll taxes (paid by the employer) and income taxes (paid by the employee) most research finds that employees bear most (but not all) of the burden. This is the opposite of your claim.

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iugtmkbdfil834today at 2:41 AM

It has to be Sunday, because I don't that kinda of argument on a regular work day. It is almost 4chan level argument that simply does not make sense, but is somehow presented as if it was a simple matter of fact. Please tell me that you were joking and I was simply not in on it.

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