Labor is the largest expense in almost any business. It is the first to go because it is the easiest way to cut costs with the least impact on revenue.
There is one aspect I don’t understand and maybe someone can help we out. When a business sees some kind of cost increase in an area, I understand they will adjust another area to compensate and remain competitive. But in this case, where every business is going to be hit with a tax increase, won’t this just be passed on to customers, like an immediate inflation hit?