Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Gabz
Why in heaven's name would an employer drop wages?

The way I am understanding this the employer will actually be laying out less money by not having to pay all the insidious taxes on the wages.
The taxes employer's pay are nowhere near the amount required to drop prices >20%. To drop prices that much you would have to reduce wages by the amount of payroll/income taxes that the employees were previously paying, ie. take home pay stays the same.
881 posted on 02/01/2005 4:28:55 AM PST by Your Nightmare
[ Post Reply | Private Reply | To 792 | View Replies ]


To: Your Nightmare
To drop prices that much you would have to reduce wages by the amount of payroll/income taxes that the employees were previously paying, ie. take home pay stays the same.

Why...the employers other expenses will also drop, particularly in the cost of purchases to do business, including but not limited to dealing with tax code compliance.

886 posted on 02/01/2005 5:24:54 AM PST by Gabz (Anti-smoker gnatzies...small minds buzzing in your business..............SWAT'EM)
[ Post Reply | Private Reply | To 881 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson