In a strong economy like our current one, upward pressure on wages overpowers downward pressure. When there is a tax cut, that net positive pressure doesn't dis

In a strong economy like our current one, upward pressure on wages overpowers downward pressure. When there is a tax cut, that net positive pressure doesn't disappear. So in the lower tax world a business can give in to wage pressure with less cost to itself than in the higher tax world. Now in the lower tax world there is also the allure of higher profit without any wage increase as compared to the higher tax world, so the issue becomes one of balancing the desire to give in to wage pressures and the desire to increase profits which is a decision that must be made on a company by company basis.