Re:An Amazon programmer’s perspective (2015)
by dlp211 on Thursday May 21, 2020 @04:53PM
(#23265117)
In your thought experiment the cost isn't being borne by the worker, it's being borne by the business.
Re:An Amazon programmer’s perspective (2015)
by jedberg on Thursday May 21, 2020 @05:10PM
(#23265380)
No it isn't.
Numbers: I pay the worker $10000 a month. Let's say my tax cost is $500 a month, and their tax cost is $500/mo. So they get a check for $9500, they see a $500 tax deduction, and they net $9000.
My all in cost is $10000.
Now the city says "you don't have to pay your part of the tax anymore, the worker does!"
So now I pay them $10000, they see a deduction of $1000 on their paycheck, and net $9000. My all in cost is still $10000, their net is still $9000. Nothing has changed.
I'm still paying $10000 to have that worker. And if my budget is 100000, I can still only afford 10 workers.
But now do the thought experiment where the employee must explicitly pay the extra 6.2%. Now of course you have to give them a 6.2% raise, because they would demand it to cover their increased costs.