Is Fed Counterfeiting An Economic Stimulus?

[danielpalos]

How many employees are involved?

21% is larger than 12%, no matter the number of employees.

How does expensing the cost of labor meet your criteria? Expensing means less income to be taxed.

Damn you're dim.

If an employer pays an additional $10,000 to a worker who is taxed at 12%,
the employer has an additional expense of $10,000 which reduces their tax at a 21% rate.

The Feds get $1200 more from the worker and $2100 less from the employer.

Now do you see your error?

If your argument is "increased income tax revenues" it fails.

It reduces taxable income.

It reduces corporate income tax paid.
By more than it increases income tax paid by the minimum wage worker.
If your argument is "increased income tax revenues" it fails.

It depends on the profit or loss; deductions only reduce taxable profits. The equivalent to adjusted gross income.

 

[Toddsterpatriot]

It depends on the profit or loss; deductions only reduce taxable profits. The equivalent to adjusted gross income.

Your claim, "Raise the minimum wage to $15, because it will increase income tax revenue" was correct if the employer has negative gross income?