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Old 06-18-2018, 12:41 AM
 
1,025 posts, read 559,196 times
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Taxes are not passed onto employees:

The federal minimum wage rate is a legally mandated rate. Legally mandated rates and amounts are not subject to reduction.
Due to enterprises participating in competitive markets such as their sales markets, markets for labor and other goods and services they need, the expenses enterprises can pass on as increased prices, or reduced compensations to their employees or other providers of goods and services are limited to some extents.

A substantial portion of most enterprises labor costs are covered by minimum-rate laws and cannot be reduced. Due to the concept of wage differentials, it is less feasible for enterprises to reduce their labor costs that are beyond mandated minimum rates.
Thus, enterprises can pass on extremely small portions of their expenses on to employees. If enterprises taxes are reduced they generally pass on even lesser proportions of their tax reductions for the benefit of their employees.

Respectfully, Supposn

Last edited by Supposn; 06-18-2018 at 01:06 AM..
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Old 06-18-2018, 08:54 AM
 
Location: Paranoid State
12,685 posts, read 9,425,981 times
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Wages reflect value-add to society. Perhaps we need a statutory minimum value-add to society that each worker is responsible to produce.
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Old 06-18-2018, 10:27 AM
 
1,025 posts, read 559,196 times
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Quote:
Originally Posted by SportyandMisty View Post
Wages reflect value-add to society. Perhaps we need a statutory minimum value-add to society that each worker is responsible to produce.
SportyandMisty, I have respect and admiration for Will Rogers. Your post leads me to recall my favorite among those of his newspaper columns that I've read.

Will Roger's solution to German U-boat attacks:

Among a published collection of Will Roger's newspaper columns, this one I've not forgotten.
He suggested that we bring the Atlantic Ocean up to boiling temperature. Our Great Britain allies superior naval fleets will sink the Kaiser' U-Bootes as they are forced to surface.
His response to technical difficulties was the reply, “I deal with policy; I leave the minor details to others”.

you're enacting Will Roger's problem-solving methodology. I hope it works well in these cases.
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Old 06-18-2018, 12:41 PM
 
Location: East Helena, MT
763 posts, read 478,609 times
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Not directly no. An employer won't reduce their current employees wages because of a tax increase. They will however limit other expenses, such as overtime, fringe benefits etc. This is just in the short term, if the increased tax burden stays over a period of years, it will influence the employment strategy that the business uses, such as reduced hiring, or converting full time to part time, etc.


Every business must protect the bottom line. You simply can't operate if you aren't profitable. Taxes are a business expense that must be accounted for, like any other expense. You either increase gross revenue(either by increasing prices, merging, starting new revenue streams), or you decrease expenses(employees, rent, compliance costs, etc.)
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Old 06-18-2018, 02:05 PM
 
5,221 posts, read 2,377,031 times
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Quote:
Originally Posted by Supposn View Post
Taxes are not passed onto employees:

The federal minimum wage rate is a legally mandated rate. Legally mandated rates and amounts are not subject to reduction.
Due to enterprises participating in competitive markets such as their sales markets, markets for labor and other goods and services they need, the expenses enterprises can pass on as increased prices, or reduced compensations to their employees or other providers of goods and services are limited to some extents.

A substantial portion of most enterprises labor costs are covered by minimum-rate laws and cannot be reduced. Due to the concept of wage differentials, it is less feasible for enterprises to reduce their labor costs that are beyond mandated minimum rates.
Thus, enterprises can pass on extremely small portions of their expenses on to employees. If enterprises taxes are reduced they generally pass on even lesser proportions of their tax reductions for the benefit of their employees.

Respectfully, Supposn

Two points:


1) Approximately 2.9% of US workers earn minimum wage. That leaves a substantial portion workers who can face some of the effect of these taxes being passed on to them.


2) As a practical matter, the main effect is in the establishment of the wage up front, and the impact on possible raises later on, rather than an actual reduction in wage. For example, a low end worker might have been able to earn $7.75/hour, but due to the taxes that are passed on to workers, he only earns $7.25/hour.
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Old 06-18-2018, 02:35 PM
 
2,360 posts, read 1,027,668 times
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should just eat it period, cost of doing business, not cost you just keep passing on and not taking responsibility of cost of doing business. Some things in this world you just have to eat it and swallow it, not spit out for the next person to take care of it for you, and taxes is one of them.
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Old 06-18-2018, 02:50 PM
 
5,221 posts, read 2,377,031 times
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Quote:
Originally Posted by hitpausebutton2 View Post
should just eat it period, cost of doing business, not cost you just keep passing on and not taking responsibility of cost of doing business. Some things in this world you just have to eat it and swallow it, not spit out for the next person to take care of it for you, and taxes is one of them.

This has been explained so many times, it's amazing that you've missed it. However, here it is again:


The economic burden of ALL taxes is borne by three groups.


1) Owners, through reduced returns.
2) Employees, through reduced wages/salaries and benefits.
3) Customers, through higher prices.


There is no one else that is going to pay the tax.
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Old 06-18-2018, 03:02 PM
 
2,360 posts, read 1,027,668 times
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Quote:
Originally Posted by TaxPhd View Post
This has been explained so many times, it's amazing that you've missed it. However, here it is again:


The economic burden of ALL taxes is borne by three groups.


1) Owners, through reduced returns.-You have tax breaks that you use to write off cost of doing business. thus lowering your tax burden.
https://www.investopedia.com/terms/w/write-off.asp

2) Employees, through reduced wages/salaries and benefits.- We pay in to the fed/state/local with our checks
3) Customers, through higher prices-. Because you the owner passed it on to us instead of eating it.


There is no one else that is going to pay the tax.

I have explain it as well. So why we, the consumer have to pay your tax bill again? We all have taxes we pay rather its in our salary, food, movie tickets. Sales tax and other city/state enforce taxes. Like i said some taxes are to be eaten up by the business, not for the consumer.
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Old 06-18-2018, 03:14 PM
 
5,221 posts, read 2,377,031 times
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Quote:
Originally Posted by hitpausebutton2 View Post
I have explain it as well. So why we, the consumer have to pay your tax bill again? We all have taxes we pay rather its in our salary, food, movie tickets. Sales tax and other city/state enforce taxes. Like i said some taxes are to be eaten up by the business, not for the consumer.

You haven't explained anything.


The taxes that are "eaten up by the business" are those that are borne by the business owners, group #1 in my post that you responded to.


If you need me to explain anything else from my post, feel free to ask.
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Old 06-18-2018, 03:24 PM
 
2,360 posts, read 1,027,668 times
Reputation: 2071
Quote:
Originally Posted by TaxPhd View Post
You haven't explained anything.


The taxes that are "eaten up by the business" are those that are borne by the business owners, group #1 in my post that you responded to.


If you need me to explain anything else from my post, feel free to ask.
Sure.. out of this list, what taxes do u as a business owner stick it to the consumers?

https://www.thebalancesmb.com/all-th...ust-pay-399045

more better list
https://www.usa.gov/business-taxes
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