Flat Pay Prompts 1 In 3 In IT To Consider Jump

CWmike writes "Companies have cut salaries and training, held back on bonuses and piled more work on employees in response to the economic downturn. These tactics may well be pushing many IT pros to go job hunting, Computerworld's latest salary poll has found. More than one third (36%) of the 343 respondents to a recent poll said they are looking to move to a new employer in the next six months. And 69% reported they had not received a pay raise in the past six months. The poll was conducted during the last two weeks in September. For employers, the warning could not be more clear. As the economy improves, the most able IT workers may leave for something better."

Comments

Re:As the economy improves???

[Skreems]

If the first guy's income tax is increased to 90%, then he can't create those new businesses. Now you have a man who USED to make 1 million but had to close-up shop because the heavy taxation made it impossible to survive

Only if he was dumb enough to not claim the money he invested in the company as a write-off. See, the money he would use to pay those fictional employees is NOT taxed at 90%, even in your scenario. In fact it's taxed relatively little, likely just the half of Medicare and Social Security tax that corporations pay on employee compensation. And the portion of it he spends on physical or service related costs of his business isn't taxed at all. The only way he's going to suddenly be out 900k is if he was taking that much in personal income one year, then turning around the next year and putting his personal assets back into the business.

If anything, raising personal income tax would be an incentive to invest more. If the choice is between taking an extra million in personal income of which 90% goes to taxes, or rolling that million back into tax-free investment in the company, the company is a much better option. Today you can take that million in extra income and pay only 30% in taxes, so it's a lot more appealing.

Basically, your argument is ridiculous, based only in fiction, and you appear to have such a loose grasp on the American tax code that I suspect you are overdue for an audit.