ManusJustus said:
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. |
And when you raise taxes his average value to the company.... drops.
It does change when you raise taxes.
Because taxes INCREASE the costs of doing buisness... meaning that said factory worker has to INCREASE his value to offset the costs of the taxes.
I mean, have you ever actually worked at a factory?
Or even know anyone who has?
The first thing companies do when their taxes get raised or their costs rise for some reason... is to get the same amount of work out of less workers.
This is even true with union plants. Ask the UAW 1005.
