The key claim in Trump's tax plan, corporate tax cuts --> wage growth, is the tip of an interesting iceberg.https://www.nytimes.com/2017/08/30/us/politics/trump-missouri-tax-plan.html?hp&action=click&pgtype=Homepage&clickSource=story-heading&module=first-column-region®ion=top-news&WT.nav=top-news …
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Replying to @BCAppelbaum
As a small business owner something seems fishy about this. Taxes only apply to profits, so tax cuts only have a small impact on wages.
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Replying to @wycats @BCAppelbaum
Occasionally they might have a marginal impact on *hiring* but I can't think of why I'd change my wage strategy in response to a tax cut.
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Replying to @wycats
Hypothetically, if you want (to keep) a given person and you are paying less in taxes, might not you be more likely to pay them more?
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Replying to @BCAppelbaum @wycats
If I want to keep a person, I pay them more because their value > their comp. Nobody gets a raise b/c of my tax strategy.
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This arg is roughly analogous to asking whether you would offer to pay more rent b/c you found a new tax deduction. It's silly.
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I can imagine an aggregate model, but it really seems like it would be a very weak effect compared to direct incentives.
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If you want to incentivize higher wages, give people an extra deduction for the first
$N after minimum wage (phased out). Will work better.1 reply 0 retweets 1 like - 1 more reply
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