this post was submitted on 23 Jul 2024
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Taxing them further will have the same effect as forcing them to raise wages, they'll just shift their cost on the final product
That’s true for income tax on revenue, but increasing taxes on stock payouts, denying corporate deductions for $1M+ salaries, and increasing tax on stock buybacks are ways to reduce disproportionate pay.
It was part of Biden’s tax plan that I hope Harris will instate next year if she wins.
https://home.treasury.gov/news/press-releases/jy2169
Why would taxes on stuffs like stock payout have a different effect than income taxes? They'll just increase price even more to make up for the difference or shift more payout to a different type of rewards like bonuses or share handouts.
It restricts the use of profits outside of investment in overhead. The surplus profits that corporations make are commonly used in large stock payments to executives as well as stock buybacks that inflate the stock price to the benefit of shareholders. Increasing taxes on those areas incentivizes increases in growth reinvestment, which includes payroll.
It’s not flawless, but it’s more effective than a national minimum wage increase.
You are completely ignoring my point, taxing those things won't diminish earnings for the top brass one bit if they can just raise prices as a response. How does increasing taxes on profits promotes reinvestment??
I’m not ignoring your point, you’re missing mine. It’s not increasing taxes on profits. It’s increasing taxes on specific expenditures.
If they choose to continue to operate as they’ve been, they will pay substantially more in taxes, which can be used to socialize necessities as I originally stated. Otherwise, they could reinvest the money into payroll and receive increased payroll tax credits.
Read through Biden’s tax proposal that I linked above. It’s a very smart way to coerce corporations to spend more money on standard payroll over CEO stock payouts.
You can use taxes to socialize necessities all you like, as long as they control prices they will simply raise them and decrease purchasing power respectively, as long as some corpo has a monopoly on a product/service they maintain control of that product, taxes cannot take away anything from them