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Originally Posted by Tidybuoy
Raising the lowest incomes to keep up is not the answer as it just keeps pushing prices up and service levels down. I believe that we need to reduce wages at the top and I would do that by limited the maximum tax deductions for payroll.
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Quote:
Originally Posted by wdfifteen
Interesting idea. Limit expensible labor to salaries of less than $100 or $150k. But instead of putting more money in the consumer's hands, it puts more in the government's hands. How is that better? A major benefit of a higher minimum wage is that it increases consumer demand and the circulation of money.
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I was thinking that if today a company pays the CEO $3 million cash salary and $7 million in stock, the company gets to deduct $10 million in expense. I have to wonder if the same company was only able to deduct $150k, would they still pay the CEO $10 mil in cash and stock? Would the company be able to afford the deluxe salary with the increased tax bill?
By the way, increasing an employee from $8.50 to $15 per hour also puts more in the governments hands in the form of income taxes and fica taxes.