Re: AltInst: a "work spreading tax"

From: <lcrocker@piclab.com>
Date: Fri May 29 1998 - 15:39:57 PDT

> I'm not sure whether I've properly understood your paper, but you seem to
> be saying that in at least some instances employers would make more profit
> if they employed more workers each working fewer hours, presumably for the
> same pay per hour. For some reason I can't see, they don't realise this,
> and they need to have it pointed out to them.

He points out that this would be true in a purely progressive-tax
system. It is not generally taken advantage of because there are
other costs that overwhelm the effect: the fixed overhead of having
an employee to begin with, for example, both in normal business
expenses like facilities and management costs, but also the expense
of regulatory requirements (which are generally flat per-employee).
Add to that /regressive/ taxes like US Social Security, and the
benefit to a business of spreading work out to more empoyees
evaporates pretty quickly.

--
Lee Daniel Crocker <lee@piclab.com> <http://www.piclab.com/lcrocker.html>
"All inventions or works of authorship original to me, herein and past,
are placed irrevocably in the public domain, and may be used or modified
for any purpose, without permission, attribution, or notification."--LDC
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Received on Fri May 29 15:59:24 1998

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