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Ben Folds/Nick Hornby: From Above

129
Walter L. Newton12/08/2010 7:32:26 am PST

re: #122 Obdicut

Okay, now you’re switching back to ‘more workers’. That is much, much more false. Let me walk you through it:

Taxes are assessed on profits. They are not an ‘expense’ that needs to be paid no matter what. only on profits.

So if you have the opportunity to hire Employee A at continuing cost X, who will produce value Y for the company, then, as long as Y is larger than X, it makes sense to hire him no matter what the tax is, because the tax is on profits. It doesn’t rise the cost of the employee except in so far as that employee is profitable. If the employee is profitable, it makes sense to hire them.

Unless you’re simply claiming the initial hiring cost is the barrier, which would be rather odd.

If a corporation has more profits, then they are capable of bidding higher for those workers because suddenly ALL CORPORATIONS have more money, perspective employees who have profitable qualifications will be more sort out after, competitively, by corporations.