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Why do companies use taxes as a reason for not hiring?

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lefthandedlefty Donating Member (247 posts) Send PM | Profile | Ignore Sun Aug-01-10 02:03 PM
Original message
Why do companies use taxes as a reason for not hiring?
It just don`t make sense because I always paid income taxes on the net(profit)not the gross.In my business anything I spend to operate is a deduction that includes wages.I know they have to pay half of an employees FICA,but they just cut wages enough to cover that anyway.Then there is unemployment insuance and workmans comp,but that is insurance not taxes the federal government doesn`t get any of that.Also federal and state withholding are paid by the employee NOT the employer.In my opinion the higher taxes argument that the righties keep spouting just doesn`t hold water.
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napi21 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-01-10 02:15 PM
Response to Original message
1. I don't think they're using taxes not to hire at all. I think ALL
EMPLOYERS simply try to get the absolute MOST out of the employees they have which improves their cost per unit. Even if mistakes are made because people don't have the time to pay enough attention to what they're doing. The emmployers figure the small cost of the errors are worth much more to them than the cost of another employee.
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hfojvt Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-01-10 02:20 PM
Response to Original message
2. because they want to pay less in taxes.
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havocmom Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-01-10 02:23 PM
Response to Original message
3. IF they are using taxes as an excuse, it is due to their part of SS and other payroll taxes
Employers have to contribute into each employee's Social Security account. That is why the self-employed have to pay more into SS; they are paying the employee's amount, and also the employers amount. But, they do get to deduct part of that on their individual tax return.

Employers also have to pay into funds for unemployment compensation and worker comp insurances.

Then there is the ol blackmail: Lower MY taxes or I hire less, or even fire more.

Basically, employers want to duck their responsibilities to society and employees by whining and stomping their feet, hoping the government will rid them of the 'burden' of having employees who make money for them. They want to eat cake and have cake while workers keep making less in real wages and lots less in benefits.

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Greyhound Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-01-10 02:23 PM
Response to Original message
4. Companies don't. People with an agenda, looking for excuses use that "reason".
The very idea is ridiculous on it's face and doesn't stand up to even cursory scrutiny.

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mzmolly Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-01-10 02:35 PM
Response to Reply #4
7. Absolutely agree.
:hi:
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Warpy Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-01-10 02:34 PM
Response to Original message
5. The nature of capitalism is to want the biggest bottom line possible
and that means driving wages down and dodging taxes.

That's why they say that. We know it's BS, they'll hire as many workers they need to in order to satisfy their customers. When there is an economic downturn and the customers aren't there, they claim taxes are the reason they're not hiring people for whom there are no customers.

In a perfect capitalist world, we'd work for the pleasure of doing a job and be replaced when we dropped dead of starvation. There would be taxes only on the individuals who are being worked to death for no wages.

And the capitalists never see the flaws in their thinking.
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EC Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-01-10 02:34 PM
Response to Original message
6. Because they are lying plain and simple
They've used it to move businesses, they've used it to break unions, they've used it to get cheap accommodations in citys before they'll move in...that is their fall back...they know that the average person really thinks they are over taxed...when most don't pay any taxes with the deals they arrange with City Counsels and States.
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lefthandedlefty Donating Member (247 posts) Send PM | Profile | Ignore Sun Aug-01-10 04:45 PM
Response to Reply #6
8. Exactly what I was trying too say
I just wonder why people fall for the same lie over and over.Try and trick a dog or cat they will catch on after 2 or 3 times humans just don`t seem to get it
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