Donald Trump and the Republicans in the House and Senate claim that their proposed business tax reduction will result in increased wages for employees. Not only have wages never gone up in response to past business tax reductions, but a bit of logic shows how ridiculous this claim is.
Assume you are planning on taking a trip. Most people would decide where they wanted to go and then search for the lowest prices for airfare and hotels. Now, imagine that your boss gave you a 10 percent wage increase. Would you then decide that you should pay more for those same flight and hotel reservations? I don’t think anyone would do that.
Most businesses pay employees as little as they can to attract and retain the staff they need. Most businesses executives also believe their primary responsibility is to increase shareholder value. It is therefore reasonable to assume that any business tax reduction would be passed on to shareholders and not to employees.
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Categories: Letters to the Editor, Opinion