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    ender101's Avatar
    ender101 Posts: 1, Reputation: 1
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    #1

    Nov 14, 2012, 01:33 PM
    Ask an economist a question
    I've never studied economics, but I've been wondering something. With all the concern with hurting job makers ability to create jobs, why not refine the tax code to protect them, but make the rest pay a higher tax rate? It seems pretty common sense to me, but wondering if there is a glaringly simple reason why it will not work.

    Why is there no discussion on flatening the tax code, and seriously limiting deductions for moderate to high income earners. Lots of talk on that, but also...

    Introducing an enhanced tax incentive for payroll, and increased incentive the longer the have a employee of the books, the bigger the deduction. Apply the same incentives to corporate tax rates.

    Across the board increasing the base tax rate for higher incomes, so if they are not adding to the workforce they are pay a higher overall tax burden. For Corporations and companies large and small that employee a percantage of staff verse employees verse income, they would either say static or actually came out a little ahead (if they have a lot of long term employees).

    It seems something along this line would increase the interest in investment in existing employees and drive incentive to high earners to create jobs, verse just market speculation and or *hoarding* money. It seems something like this would have bipartisan support.

    Maybe even rewrite capitial gaines taxing so that it scales on the amount taken out per year based on income scale, so no effect to retirees, but large money makers pay something in line with a normal tax rate. Thus driving interest more to employing verse market magic.

    Got to be a reason its not been done or considered, but I can't think of it, or read reasons it might not work
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Nov 20, 2012, 08:12 AM
    It would have to be a BIG incentive, because, on average, an employer pays between $1.25 to $1.50 in benefits and taxes for every dollar in salary paid.

    Due to that expense level, every employer does his level best to make due with their current work force, paying overtime and using temps. Hiring additional workers and bearing the above-mentioned costs, plus training costs, is a last resort.

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