1) Recent theoretical noodling by economists asks if corporate tax cuts will lead to significant wage boost. http://jaredbernsteinblog.com/when-econ-models-potentially-mislead-econ-profs-should-say-so/ …
Anecdotally, as a small business owner myself, it's hard to see tax cuts having a huge impact bc I'm already eager to hire when profitable.
-
-
The biggest drain on our hiring capacity is uncertainty about future profitability, not uncertainty about tax policy.
-
If you're extra profitable, what's a better move: A) payout as employee bonuses / increase wages or B) invest in technology / real estate?
-
If wages are already at market then A is unlikely, no?
-
Right. Hire more people.
-
Which might have an effect on long term demand for work (and thus wages), except the connection is now weaker.
-
So we're talking about already fabulously profitable companies taking extra $ from tax cuts and plowing them into employees, raising wages
-
Not impossible (although evidence is weak) but I was mostly pointing out that those forces are non-existent in small businesses.
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.