Re:Bezos donates $100M each to CNN contributor Van Jones and...
by lr4444lr on Wednesday July 21, 2021 @04:47PM
(#27911958)
Not really. Firms hire based on the cost of an employee. If suddenly the employer portion of the payroll tax disappeared, there would immediately be an incentive to funnel those funds into the salary to make job offerings stand out against what the employee's other options would be. Sure, some firms would pocket it, but it beggars belief that most of them would, when they've already made a decision to open a hiring line based on the funds available and projected revenue.
Re:Bezos donates $100M each to CNN contributor Van Jones and...
by lordnacho on Wednesday July 21, 2021 @05:11PM
(#27912239)
> If suddenly the employer portion of the payroll tax disappeared...
That's what I'm saying. The piece that's added or removed is negotiated over, it doesn't just belong to whoever has their name on it.
The person who literally sends the money according to the law is not the same as the one who pays in the economic sense.
For instance, you could transfer the legal obligation to the other party, but that would change the negotiating position between the employer and the employee.
Similarly, you can add a sales tax to some product, and make the company that sells the product collect it and forward it to the government, but that doesn't mean that the company is worse off the that amount. The pie is split according to some negotiating position.