3 ms·
Presumably he is contracted to pay Sally $59,000 gross + some level of benefits. But his costs to pay this are higher ($74,000). Presumably as taxes rise, he wi
by rlpb 16y ago
Presumably he is contracted to pay Sally $59,000 gross + some level of benefits. But his costs to pay this are higher ($74,000). Presumably as taxes rise, he will still have to pay Sally $59,000 gross + the same level of benefits, and his own costs will have increased. He is unable to pass on the full cost of a tax rise to Sally.
From what I understand, the health insurance situation has arisen due to buying power. It is impossible for Sally to buy her own insurance at the same rate that her company can do it (even ignoring any tax breaks).
- Tichy 16y agoThat could explain it, but it seems weird. In my country salary is usually negotiated pre-tax, and I think in this case it makes sense. But is there a law to set up salaries that way? He cites it as a reason for not hiring, so presumably he could just negotiate salaries post-tax and do away with the problem.
- deleted 16y ago[deleted]