Quote Originally Posted by cyb593 View Post
We should demolish payroll taxes. I admit i didnt look into the jobs bill. Where i hear tax increases i assume that would be included in it. My bad for that. As for the section below if payroll taxes did increase the below scenario would happen:
No one is suggesting we increase payroll taxes so there is no need to discuss it any further. Companies will hire people when the profit generated by an employee is greater than the cost of that employee. Certain taxes raise the cost of an employee (SS, payroll, medicare, etc.) but these taxes are not the ones democrats are proposing to raise. Raising income taxes don't change the equation much because they are only levied on profits.

Now realistically, raising income taxes on companies would result in some layoffs (for companies where the cost/profit of employees are right on the border of profitability) but that would be offset by a decrease in payroll taxes. Simply speaking, the taxes levied directly on each employee (SS, medicare, etc) play a much more important role in hiring than corporate income taxes. That's why its a reasonable idea to lower those and increase income taxes in return. So we both agree decreasing payroll taxes is a good move for stimulating the economy and that is in the jobs bill.