Reply #14: wage suppression [View All]

[wli]

Basically, you either get an across the board wage increase to compensate for higher taxation rates, or the burden is (partially) put directly on the employer, with loopholes for getting out of doing so in a large number of cases (part-time employees, gay partners, and even going so far as to split the cost with the employees).

It also penalizes employment of American residents by foreign firms, so that wage arbitrage is easier for US businesses to do.