this post was submitted on 19 May 2026
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me_irl
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Could you walk me through how increasing the wage of the worker decreases taxes? I feel like I'm really missing something here.
Lets say a worker produces a 100 in value. 50 of that go to wages, 25 to profit and 25 to taxes. If you raise the wage to 80, then it is impossible to give 25 to profit and 25 to taxes, as only a 100 in value is produced. As in 100 - 80 = 20 and 25 + 25 = 50 and 50 > 20. So you need to lower profit and taxes so that taxes + profit = 20. If the wage raise is lower, you can get away with just cutting profits, but in this case it has to be taxes as well.
You seem to forget that income is taxed.
and profits are also income with some steps in between and there are taxes on profits....
So I just simplify and file those under taxes.