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it has nothing to do with that, its a supply/demand effect. its because at either end, people will work for a given effective wage. if taxes on low income (or h
by dmh2000 17y ago
it has nothing to do with that, its a supply/demand effect. its because at either end, people will work for a given effective wage. if taxes on low income (or high income) fall, their effective wage goes up so employers can pay less and still keep (or at least get new) employees. and vice-versa for tax rates rising. compare wages in neighboring Nevada and California. Absolute wages for tech employees are much higher in Cali, but because Nevada has lower taxes and cost of living. the effective wages are about the same. (well, that part is based on anecdotal info)