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In your thought experiment the cost isn't being borne by the worker, it's being borne by the business.
by dlp211 6y ago
In your thought experiment the cost isn't being borne by the worker, it's being borne by the business.
- jedberg 6y agoNo it isn't. Numbers: I pay the worker $10000 a month. Let's say my tax cost is $500 a month, and their tax cost is $500/mo. So they get a check for $9500, they see a $500 tax deduction, and they net $9000. My all in cost is $10000. Now the city says "you don't have to pay your part of the tax anymore, the worker does!" So now I pay them $10000, they see a deduction of $1000 on their paycheck, and net $9000. My all in cost is still $10000, their net is still $9000. Nothing has changed. I'm still paying $10000 to have that worker. And if my budget is 100000, I can still only afford 10 workers.