richardhutnik said:
Well, the word is that businesses always are able to pass on new taxes, that shrink their profitability, in the form of new prices. Why wouldn't it be any different for employees? Wait, maybe businesses aren't able to pass on new taxes in the form of increased prices, due to the marketplace preventing them from raising prices. |
The higher price doesn't shrink their profit margins unelss they don't raise the price an equivelant to match the higher tax. And if they did dip into their profit margins, investors would drop stock pretty damn fast.
As for employees demanding a higher pay to offset an increase in income tax, go ahead and try that one. Keep in mind that it wasn't your employer that raised your income tax so I doubt they'll be sympathetic enough to give you a raise. Just also keep in mind they may raise prices to compensate for the higher employee pay. And also, be sure that the pay raise doesn't bump you into a higher tax bracket...you'd actually make less money then.
And the free market doesn't prevent anyone from raising prices, it just ensures that lower prices are in their best interest.
The rEVOLution is not being televised
