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>That's clearly not a fact at all! There are lots of things that companies do that aren't directly billable to clients. Yes. Like I said before, you hire for y

>That's clearly not a fact at all! There are lots of things that companies do that aren't directly billable to clients. Yes. Like I said before, you hire for your business based on need. The idea you'd have "more employees" because of a "tax surplus" is a myth. Especially from business owners that condescend to their employees and coerce their votes. I've worked for people just like this guy, and believe me, the idea he is spouting off is ridiculous.

DanielBMarkham 18y ago
Is it just me? I find the phrase "tax surplus" to be Orwellian. Do you mean keeping your own money? If so, why not just say so? People hire based on need. But people also hire based on productivity, available workforce, labor laws, legal considerations, tenure, etc. There are all kinds of modifers to the basic "need" I may need another employee, but the bar might be so high to hire them that I don't do it. In that case, existing employees just have to work harder. Simply because a company has a need doesn't change their break-even analysis. And taxes hit the break-even analysis directly as overhead. Right? Or am I missing something?
- redrobot5050 18y ago
  If you'll allow me to conceed you've got a point, I'd like to offer a rebuttal that takes us in a new direction. (Again, yes, you're right about the break even analysis). Aside from the basics (roads, schools, telephone lines) that the taxes on his employees pay for, there is one thing the payroll tax pays for as well: Unemployment insurance. Now, nobody wants their business to fail, but the failure rate for businesses is quite steep. This is a tax that literally protects the employees from the bad business decisions made by the business owner, even if he ends up bankrupt. Unemployment also keeps the supply of labor at a fairly constant rate. Say I worked for one of this business owner's competitors, who went out business, and have a mortgage. To make ends meet, I immediately take a job in an unrelated field. Now, that business cannot hire me because I've stopped looking for a job. (I know, i'm simplifying here, bear with me.) Unemployment lets me spend more time on the market, looking for offers in my field. Sort of like FDR's Treasury Secretary said about the New Deal. "People don't eat over the long term. They eat everyday."

DanielBMarkham 18y ago

Is it just me? I find the phrase "tax surplus" to be Orwellian. Do you mean keeping your own money? If so, why not just say so? People hire based on need. But people also hire based on productivity, available workforce, labor laws, legal considerations, tenure, etc. There are all kinds of modifers to the basic "need" I may need another employee, but the bar might be so high to hire them that I don't do it. In that case, existing employees just have to work harder. Simply because a company has a need doesn't change their break-even analysis. And taxes hit the break-even analysis directly as overhead. Right? Or am I missing something?

redrobot5050 18y ago
If you'll allow me to conceed you've got a point, I'd like to offer a rebuttal that takes us in a new direction. (Again, yes, you're right about the break even analysis). Aside from the basics (roads, schools, telephone lines) that the taxes on his employees pay for, there is one thing the payroll tax pays for as well: Unemployment insurance. Now, nobody wants their business to fail, but the failure rate for businesses is quite steep. This is a tax that literally protects the employees from the bad business decisions made by the business owner, even if he ends up bankrupt. Unemployment also keeps the supply of labor at a fairly constant rate. Say I worked for one of this business owner's competitors, who went out business, and have a mortgage. To make ends meet, I immediately take a job in an unrelated field. Now, that business cannot hire me because I've stopped looking for a job. (I know, i'm simplifying here, bear with me.) Unemployment lets me spend more time on the market, looking for offers in my field. Sort of like FDR's Treasury Secretary said about the New Deal. "People don't eat over the long term. They eat everyday."