3 ms·

Wages are already tax deductible for corporations.

• abakker 9y ago
  yes, I should clarify, offer better deductions. i.e. For every dollar of wage, deduct 2 from the tax bill, or some such. Wage stagnation worries me a lot, specifically because of what it does to aggregate demand.
  • rosylamp 9y ago
    That sounds like something that would be absolutely abused
    • abakker 9y ago
      sigh, probably. OTOH, unless we drastically cut government spending, tax increases on the rich and tax decreases on the middle class won't really help much. Maybe my armchair policy is a bad one, but providing the carrot to corporations to increase wages seems more rational than constantly providing them tax incentives to relocate to places where they can lower their effective tax rate. (see GE moving to MA from CT, e.g.). If you could achieve the same tax rate change by encouraging them to simply pay their workers more, some good might actually come of that policy.
      • rosylamp 9y ago
        depends what spending is on, government spending can be incredibly productive. Tax increases on the rich would work better if they actually paid them. This is a difficult problem, I certainly don't have the answer, and I'm not convinced there is a simple answer.