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thewhalehunters t1_j7ecwzl wrote

Yeah but then he would learn about payroll tax among other things and then learn that Google pays more in taxes than he realizes.


SeriousSamStone t1_j7exndk wrote

> Perhaps one of the best-kept secrets of payroll taxes is that employees effectively pay almost the entire payroll tax, instead of splitting the burden with their employers.

> This is because tax incidence is not determined by law, but by markets. In fact, the person who is required to pay a tax to the federal government is often different than the person who bears the tax burden. Usually, the marketplace decides how the tax burden is divided between buyers and sellers, based on which party is more sensitive to changes in prices (economists call this “relative price elasticities”).

> It turns out that the supply of labor – that is, workers’ willingness to work – is much less sensitive to taxes than the demand for labor – or employers’ willingness to hire. This is because workers who need a job are not as responsive to changes in wages, but businesses are able to “shop around” for the best workers or shift production to different locations.

> This means that, rather than workers and employers each paying 7.65 percent in payroll taxes, employers send their portion of the tax to the government and then decrease workers’ wages by almost 7.65 percent. Next, workers pay their 7.65 percent share on those wages. In effect, there is hardly such a thing as the “employer-side” payroll tax, because almost the entire burden of the payroll tax is passed on to employees in the form of lower wages.



acebandaged t1_j7frluo wrote

Kinda dumb to defend tax avoidance by a massive corporation


Obvious_Chapter2082 t1_j7gdur8 wrote

It depends on the reason why. Most of why Googles rate is low is due to employee compensation and R&D. Why are either of those bad things?


acebandaged t1_j7gx4fz wrote

The status quo has created massive income inequality, and is rapidly driving the US towards a breaking point as a result. Google's tax rate isn't low because employee comp and R&D, it's low because they spend massive amounts of time and money figuring out how NOT to put money back into the economy. We need to fundamentally change the way we approach corporate taxes in order to return some equality to the people.


Obvious_Chapter2082 t1_j7i3hud wrote

>isn’t low because employee comp and R&D

Their 10-K is public record, it’s absolutely due to employee comp and R&D


acebandaged t1_j7kkg9f wrote

I'm saying that the fact they can use that as an excuse not to pay more taxes is a problem


thewhalehunters t1_j7id4zv wrote

Jesus christ dude. The tax rate isn't what is driving income inequality. Not even close to correct. Read a damn book instead of inventing dumb ideas.