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The politicians have shown their hand by not designing this legislation to instead have companies pay their employees more. Why do I say that? It's currently ch
by maerF0x0 6y ago
The politicians have shown their hand by not designing this legislation to instead have companies pay their employees more. Why do I say that? It's currently cheaper to pay the tax than give the raises to your employees. So politicians have shown it's just a money grab _For the Government_ more than for the employees.
Let's say I make $100 and the mean is $1. I'll pay 0.1% on tax payments.
- singron 6y agoIt's a gross receipts tax on the business. E.g. so if you make $100, but the business has $1,000,000 in gross receipts, then 0.1% would be $1000 in taxes or 10x your total compensation. It's got teeth.
- maerF0x0 6y agoits a function of number employees and gross receipts. So companies with more employees relative to gross receipts will have less incentive to increase wages. also increasing the taxes by an additive 0.1 points (ie not multiplied by 1.001) disproportionately targets the lower gross receipts companies (such as restaurants, which would more than double their GR tax) Still seems like bad policy
- maerF0x0 6y agoEDIT ^^ And to be clear i mean the actual policy, not the intended goal of the policy (to help shrink Exec pay gap w/ average pay)