Comment

Ben Folds/Nick Hornby: From Above

231
McSpiff12/08/2010 8:37:53 am PST

Alright, I’m gonna lay out my understanding of the situation and you can correct me if I’m wrong

Income - expenses = profit or loss.

Assuming Income > expenses, we have a profit.

That’s all true before any profit tax.

So assuming we have a new hire that increases income by $1000, and expenses by $250, we have a profit of $750/worker

assuming a tax rate of 0% on profit, we increase profit by $750/worker

at 25%, we increase it by $562

50%, increase of $375

75%, increase of $187.

Its only when you go past 100% that you stop increasing profit, or actually decrease it.

So why would you hire a