It has to be Sunday, because I don't that kinda of argument on a regular work day. It is almost 4chan level argument that simply does not make sense, but is somehow presented as if it was a simple matter of fact. Please tell me that you were joking and I was simply not in on it.

▲

scotty79 3 hours ago | parent [-]

Just imagine what would happen if income taxes for employees were reduced to zero. If you think employees would have that much more money you don't think straight. Employers don't pay workers as much as they can. They pay them as little as they can and that mostly doesn't change with the tax rate.

That's all you need to know to understand the actual mechanics in presence of misleading labels. Nominally income tax (of employees) is just a tax on purchase of labor.

Another angle you could use to understand this is that reduction of income tax (for bottom 90% of earners) promotes employment. Why is that? Beacuse it makes the labor cheaper.

	▲	verteu 2 hours ago \| parent \| next [-]
		No, that's not what the evidence shows, eg: https://www.sciencedirect.com/science/article/abs/pii/S00472... > Gruber is able to identify incidence on gross earnings as well as on employment by exploiting variation in payroll tax changes between firms. The benefit of the payroll tax cut is found to have been fully shifted to workers through higher earnings, with no significant employment effects. With similar objectives, Anderson and Meyer, 1997, Anderson and Meyer, 1998 use US firm-level micro data to measure the effects of changes in an experience rated Unemployment Insurance system. Payment variation between firms, due to the number of workers laid off subsequently claiming UI benefits, allows identification of the incidence of the tax on earnings. At the four-digit industry level, Anderson and Meyer find full shifting of the burden of higher payroll tax from employers to workers in the form of lower earnings. They report insignificant employment effects. We find strong evidence of partial shifting of the burden of income tax from worker to employer. Although income tax is incident on equilibrium wages, the tax burden is not fully shifted.
	▲	3 hours ago \| parent \| prev [-]
		[deleted]