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Sat Apr 27, 2013, 06:42 AM

Please Tell Me How Is My Idea Of Taxing Corporation Based On Employee's Income?

How about we tax corporations based on the wages they pay to their employees?

This can be done for federal or state level corporation income tax.


EXAMPLE :

If Corporation A has all employees above $10 per hour rate, Corporation A would have 10% tax rate.

If corporation A has employees between $7.25 to $10 per hour rate, Corporation A would have 15% tax rate.

If Corporation A has all employees above $15 per hour rate, Corporation A would have 8% tax rate.

Note : Tax rates are only for example. I am no way suggesting tax rates to be so low at federal level. The above tax rate should be implemented only on high profit corporations (for example : 1 million or above, 10 million or above)


Please tell me if this is a good idea or a bad idea. I am open to any criticism.



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Arrow 9 replies Author Time Post
Reply Please Tell Me How Is My Idea Of Taxing Corporation Based On Employee's Income? (Original post)
Joel thakkar Apr 2013 OP
Progressive dog Apr 2013 #1
Joel thakkar Apr 2013 #6
Progressive dog Apr 2013 #7
Laelth Apr 2013 #2
Travis_0004 Apr 2013 #3
geckosfeet Apr 2013 #4
FreakinDJ Apr 2013 #5
JVS Apr 2013 #8
taterguy Apr 2013 #9

Response to Joel thakkar (Original post)

Sat Apr 27, 2013, 07:43 AM

1. Wouldn't it be better to just have a minimum wage? nt

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Response to Progressive dog (Reply #1)

Sat Apr 27, 2013, 08:29 AM

6. Only if our leaders would have courage to do that

What i am suggesting here is that rewarding companies if they pay employees more even after minimum wage is increased.


Let's assume if minimum wage is increased to $12 per hour. Now companies who have all employees above $15 or $20 can get rewards.

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Response to Joel thakkar (Reply #6)

Sat Apr 27, 2013, 08:56 AM

7. How would we reward corporations, would you tax the

workers so we could lower the corporate tax?

To make this profitable for the corp., govt. would have to pay all of the raises given. It would be simpler to have govt. pay the money directly to the worker and cut out the middle man. Kind of like the earned income tax credit.

Shouldn't corporations pay a wage high enough so that their employees do not need government subsidies? How could they be forced to do that?

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Response to Joel thakkar (Original post)


Response to Joel thakkar (Original post)

Sat Apr 27, 2013, 07:47 AM

3. I think a corporation would just get rid of some of their low wage staff

 

In some businesses their cleaning crew may be their lowest paid staff. They might just get rid of them, and have an outside business do their cleaning.

Its also a bad idea for other reasons. Where I work, almost everybody has a college degree. Why should my business pay a lower tax rate than McDonalds, just because we have skilled employees?

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Response to Joel thakkar (Original post)

Sat Apr 27, 2013, 07:49 AM

4. Hmm. Yeah. A dynamic tax rate based on profits, wages and the differential between

ceo/leadership and employee pay rates.

So the more profit and larger disparity between pay rates the higher your taxes are.

But that is only for corporate taxes. What about the billionaires who pay 15% or less because all their income is from "investments"? Or who pay nothing because all their money is sheltered in foreign banks?

Basing tax rates simply on pay rates does not really work. I think that you need to consider (at a minimum) the differential between highest and lowest, and overall profits.

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Response to Joel thakkar (Original post)

Sat Apr 27, 2013, 08:11 AM

5. Just remove the "Off Shore Tax Loopholes"

 

and corporations would be forced to earn their profits the Good Old Fashioned way - By investing their profits in capitol and talent

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Response to Joel thakkar (Original post)

Sat Apr 27, 2013, 09:54 AM

8. Sounds interesting, but I think the response would probably be to contract out low-end jobs.

I'll give you an example of contracting out. I know a family whose business is washing the linens (napkins, table cloths, towels, aprons, etc.) for about 1/3 of the restaurants in the city. This contracting out isn't tax motivated, it's done because most restaurants are not interested in the labor and machinery needed to take care of their own linens.

So what I see under your proposal is that companies will try to make it so that the low wage jobs are moved off their payroll. Instead of hiring a janitor at $7.50, they'd sign a contract with a "janitorial services" company.

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Response to Joel thakkar (Original post)

Sat Apr 27, 2013, 09:56 AM

9. DUmbest idea I've ever heard

Bar

none.

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