The Cold Civil War

And it has NOTHING to do with labor supply..........but it can and WILL affect labor demand. In fact, I wonder if he can point to a situation EVER where increased taxes on businesses helped the unemployed get jobs?

 

A tax on a rich person has nothing to do with labour supply? Wow! Sounds like you think rich people don't work. Hmmm, perhaps you do have a point...

 

So you think taxing businesses is going to put them out of business, into the labor pool and INCREASE the labor supply? How? Who will be left to hire them? The Communist Party?

 

Catch up now. A tax on a rich fellow's income will, if they work, impact on their labour supply (which is backward bending, given the nature of income and substitution effects). Its completely different to ShadowX's need for a sales tax and perfectly inelastic demand.

I'm still thinking a right winger will appear with some understanding of Econ 101. Surely there must be one with such basic economic knowledge? So far, no dice.

 

Uh.......my Econ 101, 102, Macro and Micro Econ is just fine. Substitution in NO WAY correlated with business taxes. Personal taxes? Sure. But the biggest whopper you've come up with is that somehow substitution affects the labor supply. You just can't make this stuff up. Oh wait, you just did.

 

Oooo, economics knowledge! That's super!

Oops, you've only gone and ruined it! Substitution effects refer to shift from one good (consumption) to another (leisure). This is Econ 101 labour supply. You pretended didn't you? Tut tut

 

Substitution is a product derivative. It has zero to do with leisure time. Leisure is not consumed by the way, it is enjoyed. Doing absolutely nothing is free, there is no valuation for it as it is completely subjective.
One person's leisure is suffering fools on this forum (ahem) while another is snow skiing the Alps. You are better entertainment, no matter what the cost (zero).

 

I'm still appreciating your value at showing right wing knowledge! Econ 101 treats the labour market in the exact same way as the product market. Income and substitution effects are used, as standard, in decomposing a change in the net wage. That you don't know this only confirms that you don't know Econ 101.

 

You may be right that I don't subscribe to Alinsky's Rules for Economics. You still can't answer the question. How does an increase in business taxes affect the labor supply? You won't, you can't, because it doesn't.Oh.......and you are confusing substitution with opportunity costs.

 

Amazed but also saddened.

 

Let's not kid ourselves here. You've been repeatedly asked to refer to Econ 101. You couldn't.

Your question is nonsensical. We are referring to a tax on the individual. If you want to refer to business taxes, you need to chat to ShadowX. If you referred to, say VAT, then that produces an inflationary effect (e.g. see, for example, Thatcherism and its use of VAT in response to Hayek and Friedman). Its then a net wage reduction and we'd expect work disincentive effects. Of course that's not the end of the story. Thatcherism subsequently, via monetarism, ensured a collapse of the manufacturing sector. The focus is then on a lack of labour demand, engineered by right wing economics.

 

No no no. You are moving the goal posts. You've deserted your bunker (business) and moved into the tall weeds (consumerism). Consumers do not directly employee anyone, and they do not have causation on the labor SUPPLY. I'm calling you out in that.

 

Tut tut, still haven't caught up! Its ShadowX that referred to business tax. I referred to tax on the individual. You do struggle so.

 

Nyet! You asked what the result of increasing taxes was on the labor supply. For consumers (individuals) that is completely non sequitur. Please just quit now while you are a little bit behind before I run up the score on you. .

 

Yep, because that was what I was talking about. Its ShadowX who brought up the idea of a sales tax on a perfectly elastic demand

You don't have a point, except to sneer at ShadowX. That's desperately rude, given you're not talking to them about it! Perhaps you're scared? A few deep breaths and type "Shadow, I'll add the x when you say so, please forgive me but..."

 

I haven't even quoted Shadow other than to sneer at your fantasies. Are you deathly scared of your thread strawman? I understand your wisdom in deflecting away from your lunatic ramblings though.

 

That's why I'm laughing. You're referring to ShadowX's errors and pretending you have hit home. It has a cute chortle chortle value.

My thread strawman? Gosh, you really are lost! I've simply put ShadowX right over their errors regarding the OP. Each one of those errors reflected their failure to understand supply and demand. Of course, given you also failed in answering simple Econ101 questioning, you have an excuse for being lost. Don't be too harsh on yourself!

 

Let's try this one more time. What do I have to do with ShadowX? We had a mutual snicker over your fallacies and that's it. Then you doubled down with more fallacies and Motley Fool Economics. Well done!

 

Already said. You're arguing against ShadowX's comments, but you're pretending its against me. It is charming. I've never met someone be so belligerent against me, but actually diligently attack my opposition. Never met someone so funny on here. Love you for that!

 

Businesses don't pay taxes. They pass the taxes on to their customers with price increases. Raising taxes on businesses only taxes the people more.

If the market doesn't allow them to raise prices, they shut down.

 

I've met some confused people before but......................^

 

You're confused over confusion? You do continue to make me laugh! I have referred to the obvious: a tax on the rich cannot be passed on to consumers. If you'd like to argue that point, please try. I think you will entertain me whatever you say.

 

What happens if a good exhibits price elasticity of demand?

 

Can you explain what "price elasticity of demand" means?

 

You have to ask? That means your comment "Businesses don't pay taxes. They pass the taxes on to their customers with price increases. Raising taxes on businesses only taxes the people more" was based on hot air!

A sales tax shifts the supply curve. How the firm can respond depends on the nature of the demand curve. Its only in the very silly assumption that demand is virtually vertical that taxes are simply passed on to consumers.

Please learn some economics before you make these sort of silly comments!