Before Quora went to absolute dog shit and you could actually get real, good answers to real, good questions, I remember a question was asked about tax cuts and a business exec gave a really insightful answer. They basically said “no, tax cuts on businesses don’t create jobs or boost pay. If we hire somebody, it’s because we need someone to do this work; we’re not going to hire people just because we have money laying around. We people based on the salary we negotiate with them, not based on how much extra cash we have laying around. Tax cuts are really just a giveaway for the investors and c-suite.” Mind you, they weren’t taking a moral position about tax cuts, just telling it like it is: business tax cuts don’t create jobs and don’t raise pay, about the only thing they do is increase investor returns. All you have to do is look at the massive wave of stock buybacks that happened in the wake of the Trump tax cuts.
Everyone with any insight into the business world knows this. The business leaders know it, Congress knows it, it’s probably one of the bigger scams in US politics, and that’s saying something.
2017 Corporate Rate Cut Didn’t Boost Most Workers’ Earnings
Was it supposed to? I thought even then we all saw it for what it was.
It was just another version of the trickle down economics myth. It has been known to be a lie by anyone paying attention ever since it was first suggested, but apparently conservatives voters are too stupid to catch on.
I had a friend tell me that her husband declined a raise because the boss told him it would put him in the next tax bracket and he would ultimately lose money. He accepted this with no scrutiny. When I told her how progressive tax works, she was livid with the deception.
Propaganda is a hell of a drug.
Who are these people who don’t understand the basics of living? Have they never been cheated by someone? Don’t they realize their boss is trying to cut costs?
Did they go back to their boss and ask them about it? Tell them you cheated me and I think it was intentional? Tell HR?
I’m going to guess the answer is “no”. I do not advocate for this, but this is the kind of thing that would get you beaten up before. At least tell them to report it to HR.
There are a ton of people that don’t understand the basics of taxes because they equate the tax withholding by paycheck with overall taxes collected throughout the year.
In lower paying jobs, one high paycheck will skyrocket your withholding because it estimates based on an assumption that you will continue to have that increase. For example, a yearly bonus can result in that particular paycheck not being any higher than your normal paycheck, and people equate that to the whole amount being taxed even though at the end of the year only a small increase to taxes due is the end result.
I remember when making slightly over minimum wage having a bonus not increase that paycheck because the withholding kept it from going to me right away. The bonus was instead paid back to be as part of my tax refund, since that looks at the whole year.
A lot of people can’t do finances past the current month when they live paycheck to paycheck, and keep that mentality even after they make more money. I have had people at my decently paid job think that an increase in pay will cost them in taxes within the last three years, and one of those people used to work on the state tax department website.
But the idea itself should feel incorrect. A raise is more money, not less. There’s lots of people who make slightly more. Why would they accept working for less money overall? It makes no sense.
Secondly, why would they believe their boss when it comes to money? Do they not count their change at a store or examine the receipt at a restaurant? This is the level of naivete that’s required.
A lot of people don’t use critical thinking.
Congress should revisit? Congress is complicit. Don’t expect change that hurts the rich.
That was a Republican Congress. A Democratic Congress should revisit it. I don’t have faith that they will.
