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an individual's "discretionary income" can also be used as savings or investment. you're argument doesn't make any sense.
by metaphorm 10y ago
an individual's "discretionary income" can also be used as savings or investment. you're argument doesn't make any sense.
- eridius 10y agoWell yes, it's discretionary. That's what discretionary means - you can use it for whatever you want. Using it for savings or investment in no way invalidates my argument, because that's exactly what I'm talking about. If you have a bunch of money in savings, then getting hit with a $215 fine isn't a big deal, you can pull that small amount of money out and pay it. But the whole point is that since the extra "revenue" you get from a higher salary is discretionary, then you should be able to easily absorb a small fine, but a company with large revenues doesn't necessarily have a lot of discretionary cash. Now it's certainly possible that your investments aren't liquid enough for you to free up the $215 to pay the fine, but that's a different situation (and is your own damn fault). Companies can be in this situation too, but don't mistake the existence of this situation as a refutation of my argument, because it's not. My argument at its core is that a person making $100k can be expected to much more easily be able to absorb a particular fine than a person (with the same cost of living) making $50k, but you can't necessarily say this about companies, because a person's salary isn't dependent upon how much they spend, but a company's revenue is, and so if company A has a higher revenue than company B that does not mean company A's profits are higher.