Thoughtson Biden's speech/plan?

[Belsnickel]

(05-09-2021, 04:41 PM)BFritz21 Wrote: False.  You're the one who doesn't understand.

Not sure if you took any classes that covered taxes or employers paying taxes (I have associate degree in accounting), and I also took classes on business management, so I understand it all.

All income is taxed.

Even if employee wages are a write-off, employers are still making less if they're taxed more, meaning they'll just find ways to be more efficient and do things with less workers to off-set the taxes.  It seems like it would work, but individuals and companies aren't going to take the hit now just because it will hypothetically offset in the future, especially in the current times when people realize how quickly things can go bad, like they did with the Coronavirus.

Back when I was a tax accountant, there were times we'd have to call the IRS to get an answer to a question. The first thing we'd do upon getting a rep on the phone was to ask a simple question. If they answered wrong, then we'd ask to speak to their supervisor because they didn't have the knowledge needed to answer our more complex questions. That statement in bold would be an example of a wrong answer.

Now, the idea that wages are just a deduction on taxes is technically correct, but it doesn't work exactly the way that Fred was saying. Wages are an expense, so they do reduce the overall net income, but there is a point in which the law of diminishing returns comes into play. There are also a number of externalities involved that alter the calculation for the benefits to the employer of increasing their personnel services. In general, sure, increasing COGS decreases taxable revenue, but it's never as simple as either side likes to make it seem.