tag:blogger.com,1999:blog-1679879728685083908.post1328507321017722471..comments2023-09-20T06:06:42.575-07:00Comments on Economic Reset: Why raising taxes on the rich won't cost jobsEric Lhttp://www.blogger.com/profile/17688525347746547529noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1679879728685083908.post-70001972335551385472011-12-30T01:07:02.025-08:002011-12-30T01:07:02.025-08:00So if I understand you correctly, instead of hirin...So if I understand you correctly, instead of hiring or doing other things considered business expenses with pre-tax dollars, a business will also consider buying back stock or taking a vacation with post-tax dollars? So an increase in the tax rate makes the latter cases relatively more expensive, so their incentives may be affected... in favor of hiring?Eric Lhttps://www.blogger.com/profile/17688525347746547529noreply@blogger.comtag:blogger.com,1999:blog-1679879728685083908.post-91704071484164664192011-12-29T12:52:57.954-08:002011-12-29T12:52:57.954-08:00This assumes there is no other alternative for the...This assumes there is no other alternative for their money. A corporation can buy back stock with retained earnings or hire an employee. An unincorporated organization can take a vacation or hire an employee. Increased taxation affects the marginal rate of substitution between the two items insofar as you lessen the payoff from the item facing increased taxation.Anonymousnoreply@blogger.com