re: #138 schnapp

No they simply can’t afford to higher more workers … I don’t understand how you could possibly claim that higher taxes make firms more likely to hire workers.

Because the taxes are on profits.

Sigh.

Let me try one more example:

I run a small tech service, helping people fix computers. My cost-per-hour of my workers is $30, and I bill customers at $130 per hour. So, I make $100 per employee/hour worked.

Lets look at that under a few different tax environments.

Say that there’s a 90% tax on profits. Bastards! So, after taxes, I make $10 per worker/hour.

Let’s say that there’s a 10% tax on profits. Cool! So, after taxes, I make $90 per worker hour.

In both cases, it makes sense to hire as many workers as I can, because each worker is, individually, profitable.

Does that make it clearer?