re: #157 Obdicut

Since I didn’t say that taxes won’t alter the decisions of households or firms, I don’t understand why you’re making this point.

Do you understand, through my example, why hiring profitable workers is not affected by a tax on profits?

What part of lower after-tax profits and lower retained earnings meaning less workers can afford to be hired is hard to understand?
Let’s reverse the situation and say that corporate taxes are lowered. Firms will have more to invest in either capital or labour. They will choose a mixture of both. Firms will hire more workers. Wages will rise because firms will “bid” them up.