Question by Matthew D Rises: How can a tax increase on business cost jobs with wages and salaries are tax deductible?
Wouldn’t that simply make a greater portion of business income taxable, and therefore subject to the higher tax?
Answer by Un-documented Liberal
I think companies cut corners (lay people off) to keep the profit margin the same – before the tax increase came along.
I forgot which country where the business taxes where so high – that most businesses figured out it was more profitable to run things in the red for tax deductions.
I think your scenario could backfire & gov would actually start to lose revenue.
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