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

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."