| Kasz216 said: er... what? I don't think you understand economics. An employee's value on the market is detrimined by the value his work has to the average company. When you raise taxes... that worker's value decreases because his value to the company and individuals in charge is lowered. |
LOL, What?
A summary of what I said would be that an employee's value on the market is determined by the value his work has to the average company.
The workers value doesn't change when you raise taxes, unless as I mentioned before the tax effects the demand of the good (like a sales tax or a tariff would decrease demand). If you tax the rich more, the value of a factory worker he employees will stay exactly the same. The worker produces X amount of revenue and costs Y amount of salary, as long as X > Y he has a job and his employer will not fire him.
In fact, a business will always seek to maximize profits, and in the case of taxing the invidual onwer more, it has absolutely no effect on the value of optimum labor to maximize profits.
