Recently, there has been a great deal of political talk about trickle-down job economics. Let's talk about this.
Assume that I am the owner of a retail business, and a person of authority tells me this.
"I want to make you a deal. You do not have to pay any taxes on anything. No taxes on your property, no taxes on your business inventory, no taxes period. Payroll, unemployment, workman's comp, FICA — no taxes on anything. Then my question to you is this. Will you hire additional help?"
"No, I don't need additional employees. I have very good people who adequately take care of my business. If my business grows, then I may consider hiring, but not at the present."
"Well, how about giving a wage increase to your help."
"I feel that I am paying a favorable wage along with what I see in the community. My employees can participate in a 401(k), I pay part of their health insurance, and they accumulate vacation time also."
Enough said about "trickle down."