Thoughtson Biden's speech/plan?

[*michaelsean*]

(05-10-2021, 07:31 AM)Belsnickel Wrote: 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.

Yes adding employees and the benefits they can produce versus their cost can be complex.  It gets even more complex when you want to hire people who will not contribute directly to the bottom line through production such as compliance personnel, HR etc.  Unfortunately everyone wants to win an argument so there is no actual discussion.