Lux Investing
Detailed explanation on the link between an increase in income tax and firms investing?
Please could you give a detailed explanation on the link between an increase in income tax, firms investing and employees demanding higher wages? If employees demanded higher wages, how would they do this (go on strike etc)? Also, how would firms cope with that? Would they have to raise salaries or could they do something else to make workers happy? :) Thanks!
Public Comments
- If people pay less taxes, they have more money to spend and thefirms can sell more. If firms pay higher salsaries they raise the prices of their products and earn more money than before, because the price raise is higher than the wage raise.
