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- Comments: Gated by NETNEWS@AUVM.AMERICAN.EDU
- Path: sparky!uunet!paladin.american.edu!auvm!SAIL.STANFORD.EDU!ANDY
- Organization: Computer Science Department, Stanford University.
- Message-ID: <9212222346.AA19333@SAIL.Stanford.EDU>
- Newsgroups: bit.listserv.politics
- Date: Tue, 22 Dec 1992 15:46:50 -0800
- Sender: Forum for the Discussion of Politics <POLITICS@UCF1VM.BITNET>
- From: Andy Freeman <andy@SAIL.STANFORD.EDU>
- Subject: Re: more responses to andy f.'s comments
- In-Reply-To: <01GSM1MTTV8I9UN3CR@TOE.TOWSON.EDU>
- Lines: 59
-
- >>My comprehension of languages is quite good. I combine it with
- >>a comprehension of algebra. Unless we IGNORE relative productivity,
- >>a ratio cap is an absolute cap.
- >
- >If the lowest paid person in a company makes 20k per year at a
- >10:1 ratio top management can make 200k per year and write it all
- >off on taxes, every dollar over that they pay an additional (whatever
- >the tax rate on their earnings is, say 28%) .28 to the government.
- >
- >This doesn't mean that they can't pay their top managers more than the
- >ratio (a cap) it means that it will cost them more to do so, but I
- >would not suspect that it would stop them.
- >
- >Given that this would produce a fair amount of revenue, the rates
- >could drop substantially for both corporations and individuals, the
- >point of my proposal was to redistribute the tax burden such that
- >businesses pay a larger share than they currently do. (They currently
- >pay about 17% of the total tax pie, down from 39% in the 50's when
- >the tax code was set up to build the middle class.)
-
- There are lots of ways to accomplish that goal and it isn't obvious
- why O'Andy picked this one.
-
- Suppose one employee is twice as productive as another. O'Andy thinks
- that double-taxing that differential is "good". Who is it good for?
-
- >>Now, there may be one way for both factories to escape this trap.
- >>Instead of hiring janitors, they might be able to get away with
- >>contracting out for janitor services. Will O'Andy allow that?
- >
- >It has been happening all along anyway, fine, we just raise the
- >minimum wage and find some way to provide the health and retirement
- >benefits that business doesn't want to pay for directly.
-
- That doesn't reduce the differential at either factory. Hiking the
- minimum wage shoves low-productivity people out of their jobs and
- pushes up the wages of everyone else.
-
- >I suppose you must be in favor of socialized medicine since you don't
- >want businesses to take on any obligation for something that provides
- >a "social good," right?
-
- Huh? I don't much care what obligations biz choose. I don't much
- care what O'Andy spends his money on either. If he wants health care,
- fine with me. If he prefers booze, that's fine with me too.
-
- I'm willing to let O'Andy decide what he wants. Why isn't he willing
- to let anyone else decide for themselves?
-
- Of course, if O'Andy wants to play the "we know better than you" game,
- I'll be happy to have the thugs/govt come in and implement my wishes
- on him. It's a knife that cuts both ways, and if O'Andy insists on
- bringing it, I'm not going to let my "I wish you wouldn't do that"
- belief interfere with my efforts to respond in kind. (Is he really
- sure that he's better at that game than I am?) Do onto others as
- they're trying to do onto you and all that.
-
- -andy
- --
-