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Benefits for the employees don't matter nearly as much as benefits for the business. The business doesn't gain from lower income taxes, unless it pays its emplo
by jahewson 12y ago
Benefits for the employees don't matter nearly as much as benefits for the business. The business doesn't gain from lower income taxes, unless it pays its employees less, but then there's no benefit to the employees, plus they take a pre-tax wage cut which isn't much of a feel good factor.
Employees will still have Federal income taxes at something around 25% depending on salary.
- spikels 12y agoYour logic is flawed: (1) Businesses and employees can split the benefits of lower income taxes and both be better off (both in theory and in practice it is never an all or nothing choice). (2) Hopefully employees are not so stupid to care about the "feel good" of greater pre-tax income they will never see. (3) Lastly, lower salarys because of lower state taxes will also mean lower federal taxes because of progressive design federal tax rates.