Quote:Okay, so what would they be hired to do?

 

Keep in mind that businesses don't pay taxes on the segment of income that goes out in payroll, so lowering taxes on them doesn't actually incentive them to hire.

 

Also keep in mind that people on the lower end of the income scale already have a nonexistent or negative income tax rate and only people making a decent amount of money to start with would have a notable increase in income by lowering income taxes, and people of higher means have a lower propensity to spend additional marginal income.

 

So, what does lowering already low tax rates accomplish for the economy other than lowering government tax receipts?

 

You're aware that business matches employee payroll taxes right? If I hire a guy and pay him $700 a week, his tax deduction is $100 a week I'm matching that $100 so that employee cost me $800 a week and he's only seeing $600 on his check.

 

That alone prevents employers on the border of hiring help from adding another person to the payroll. Very few positions get filled for less than a take home pay of $600 a week. That's one way taxes DIRECTLY impact employment.

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