Comment

Ben Folds/Nick Hornby: From Above

134
jamesfirecat12/08/2010 7:34:53 am PST

re: #128 schnapp

But firms are obviously going to have less money to pay their workers or their investors if the government takes more profits away in tax. They will have a lower demand for workers or capital and because capital is more mobile, they will instead lay off workers because they can’t afford to higher as many. More people will be unemployed, that drives wages down. Basic supply and demand.
From Greg Mankiw

re: #125 Obdicut

From the link to the PDF I posted above.

So corporations think…

“I’m gonna make less money because of a government tax… therefore I should commit this unprofitable action so that I have less money to give the government…. that’ll show em!”