4 ms·
Companies don't pay taxes for their employees, that's some bs. They pay part of their social security cost, which absolutely happens in the US as well.
by manuelabeledo 4y ago
Companies don't pay taxes for their employees, that's some bs. They pay part of their social security cost, which absolutely happens in the US as well.
- Am4TIfIsER0ppos 4y agoTo whom do they pay that "social security"?
- manuelabeledo 4y agoLet me rephrase: there are no taxes paid for mere employment; instead, taxation for social security is shared between employer and employee. Saying that governments “hide taxes from workers by taxing the employer” is inaccurate at best. Taxation is shared, and there aren’t dedicated taxes for employers.
- jokethrowaway 4y agoThe net effect is that the average Joe reads his payslip and just see his share of social insurance contribution - and then complains that his employer his paying him too little, without knowing how much social insurance his employer is paying. Hiding seems appropriate.
- Am4TIfIsER0ppos 4y agoIf it costs an employer 100k to employ a person then that person should receive 100k.
- manuelabeledo 4y agoYou meant to say that employees should be paying 13% in social security, instead of the current 6.5% + 6.5% model.
- Am4TIfIsER0ppos 4y agoNo I mean employees should be able to spend their salary on whatever they like. Whether that is a pension/investment/savings or a flashy car is up to them.
- manuelabeledo 4y agoSo either the employer pays taxes, or no one does. First one is fine with me. Second, no so much. Libertarian utopias are just that, and every single example of such has been a disaster.
- fsckboy 4y agoin the US, W2 wage income tax withholding is more or less invisible to the employee to the extent that most people view their tax refund as a bonus rather than the tip of the iceberg of taxes they've been paying. When you work consulting with a 1099 you suddenly realize how much money you need to fork over to feed the beast. (I suspect changing this aspect of the law would really swell the size of anti-tax political parties.) I point this out to say it's not so simple as to say "who pays" what tax. US retirement social security and unemployment insurance and employer health plans may map onto european social security costs paid by employers, but if the cost to employers is variable wrt number of employees it would be fair to call it "paying taxes for employees" (and especially when you consider that in some continental language families "for" and "per" are the same word ;) because it has a very similar price elasticity effect on the labor market