You are totally ignorant to business if you think it works like that.
If low skill workers make more money, it doesn't affect the CEO pay one bit. The employer will cut hours, layoff people, increase prices for their products or services, or make employees pay more towards their healthcare benefits.
the vast vast vast majority of business don't have a CEO but these fucking idiots think that every little business with 4 or 5 employees has a CEO making 500 times what their employees do
Fucking clueless
Of course not, duh lol. My problem is with giant corps DUH.
and the very small percentage of CEOS have absolutely no effect on your pay
When they make 50 million a year (and pay little in taxes) they cause all kinds of problems, dupe.
how do you know how much they pay in taxes?
oh yeah you don't know
and I can guarantee it's probably more than you make in a year
Like that matters, Pub dupe. They pay less %wise and end up with all the new wealth, dope
At the heart of the debate over "the 47 percent" is an awful abuse of tax data.
This entire conversation is the result of a (largely successful) effort to redefine the debate over taxes from "how much in taxes do you pay" to "how much in federal income taxes do you pay?" This is good framing if you want to cut taxes on the rich. It's bad framing if you want to have even a basic understanding of who pays how much in taxes.
There's a reason some would prefer that more limited conversation. For most Americans, payroll and state and local taxes make up the majority of their tax bill. The federal income tax, by contrast, is our most progressive tax -- it's the tax we've designed to place the heaviest burden on the rich while bypassing the poor. And we've done that, again, because the working class is already paying a fairly high tax bill through payroll and state and local taxes.
But most people don't know very much about the tax code. And the federal income tax is still our most famous tax. So when they hear that half of Americans aren't paying federal income taxes, they're outraged -- even if they're among the folks who have a net negative tax burden! After all, they know they're paying taxes, and there's no reason for normal human beings to assume that the taxes getting taken out of their paycheck every week and some of the taxes they pay at the end of the year aren't classified as "federal income taxes."
Confining the discussion to the federal income tax plays another role, too: It makes the tax code look much more progressive than it actually is.
Take someone who makes $4 million dollars a year and someone who makes $40,000 a year. The person making $4 million dollars, assuming he's not doing some Romney-esque planning, is paying a 35 percent tax on most of that money. The person making $40,000 is probably paying no income tax at all. So that makes the system look really unfair to the rich guy.
That's the basic analysis of the 47 percent line. And it's a basic analysis that serves a purpose: It makes further tax cuts for the rich sound more reasonable.
But what if we did the same thing for the payroll tax? Remember, the payroll tax only applies to first $110,100 or so, our rich friends is only paying payroll taxes on 2.7 percent of his income. The guy making $40,000? He's paying payroll taxes on every dollar of his income. Now who's not getting a fair shake?
Which is why, if you want to understand who's paying what in taxes, you don't want to just look at federal income taxes, or federal payroll taxes, or state sales taxes -- you want to look at total taxes. And, luckily, the tax analysis group Citizens for Tax Justice keeps those numbers. So here is total taxes -- which includes corporate taxes, income taxes, payroll taxes, state sales taxes, and more -- paid by different income groups and broken into federal and state and local burdens:
As you can see, the poorer you are, the more state and local taxes bite into your income. As you get richer, those taxes recede, and you're mainly getting hit be federal taxes. So that's another lesson: When you omit state and local taxes from your analysis, you're omitting the taxes that hit lower-income taxpayers hardest.