UnThreaded | Threaded | Whole Thread (54) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: sykesix Big gold star, 5000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75379  
Subject: Re: Higher Medicare premiums for Top 25% Date: 4/14/2013 3:06 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 3
Because, in the end, every employer looks at the total cost of an employee...and to get good help, pays what the market demands. My assumption is that my employer would have paid me a slightly higher salary if the employer side of the Medicare tax did not exist. Your ( assumption) mileage may vary.

I hear that argument from time to time and it makes very little sense to me. I agree that compensation is mostly set by supply and demand. I've never heard of wages being set by the employer's available cash. Bonuses sometimes, but not wages. Wal-Mart is one of the most profitable companies in the world, and four of the ten richest people in America are named Walton. Yet most people at Wal-Mart make minimum wage. Wal-Mart is also the largest private employer in the county. IIRC, McDonald's is number two private employer, and same thing there.

See also:

http://tcf.org/blog/detail/graph-corporate-profits-rise-to-n...

and

http://econographics.wordpress.com/2013/03/05/corporate-prof...

I've simply never heard of employers overpaying employees if the company has extra money. There might be isolated incidents where it has happened, but it is certainly not standard practice.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (54) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Mylan Transitioning from Generics
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement