Feedback on a tax change idea
Anyone a tax expert?
I'm wondering what might go wrong with a tax system designed to encourage full employment in which Corporate tax rates are determined on a scale by three measures: 1) Average Salary (total salaries expense/# of FT employees), 2) Lowest monthly salary FT Employee, 3) Number of full time employees.
Image grids for each category where categories would be ranges of number of employees.At the intersection of average salary ranges and lowest wage ranges you'd find your base corporate tax rate.
Are there similar systems within current U.S. corporate tax codes? Do you think this would encourage employment? Why/why not? Are there examples of countries do something like this? What else might be wrong with this idea?
I should also clarify another point: More employees equals different category with better tax rate range, paying better wages equals better position on the average salary side, not paying below x to any employee equals a better position on lowest wage side. The end result would be the company with the most U.S. FT employees, paid the best average salary, with the lowest paid among them making a decent wage, would have the lowest possible corporate tax rate.
I think your Objective, to provide companies a Tax Incentive to create (American) Jobs is a Good one!
However, I don't quite follow how your formula really incents companies to create American Jobs, vs. shipping all the jobs / work off shore (?) and/or overwork and/or underpay their minimal staff (?) and distribute their increasing profits to their shareholders and executives, e.g. via excessive bonuses and stock options and minimal salaries (?).
I had an idea focused on the same Objective, to provide companies a Tax Incentive to create (American) Jobs, involving giving companies a tax deduction for, example, the first year salary, or total compensation and benefits cost, of each new American employee they hire / job they create.
What do you all think of an idea like that to help incent companies to create more American jobs?
I hope this all helps and Have a Great Day! :)
- Michael S. DeVries
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