3 ms·
Raising income taxes for those making over $1 million while cutting taxes paid by people making under $1 million makes it cheaper (in employer cost for the same
by dragonwriter 7mo ago
Raising income taxes for those making over $1 million while cutting taxes paid by people making under $1 million makes it cheaper (in employer cost for the same disposable income; looked at a different way, it provides more disposable income for the same nominal pay) to hire workers across most of the income spectrum of any industry (even in tech—most workers in the field aren’t making over $1 million/yr).
- pc86 7mo agoThe only people making more than $1M in W2 income are in fields where nearly everyone is going to be making that. Highly specialized physicians come to mind pretty quickly but I'm sure there are "lots of" (relatively speaking) attorneys making that too, and probably some other fields where it's more doable than something like tech or sales. There is no way this meaningfully changes the income distribution of hires in any industry.
- dragonwriter 7mo agoI didn't say it changed the income distribution within thr industry, I said it made hiring for the vast majority of roles less expensive in terms of disposable income provided (or, holding nominal pay constant, provides greater disposable income at the same pay.) That is, its not a negative economic incentive except for people who have a very large amount of income taxed as regular income where that income is not dependent on the ability to have other people with more normal incomes working in close proximity.
- pc86 7mo agoSorry for misunderstanding, yeah I think we're on the same page on that point.
- lostmsu 7mo agoThis tax will affect about 1 in 10 new Meta hires in WA: https://www.levels.fyi/companies/meta/salaries/software-engineer?dma=819 https://www.levels.fyi/companies/meta/salaries/software-engi..., probably 2 in 10 currently employed ones. More if you consider families with 2 working SDEs (not uncommon).