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Posted by dpb on April 30, 2008, 12:10 pm
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Katie wrote:
...
> Well, whose pocket it really comes out of is subject to debate. If
> the employer didn't have to pay its half of the FICA taxes, would it
> increase the employee's compensation by that amount? Maybe so, maybe
> not. Maybe the cost comes out of the employer's profit or is
> recovered by a higher price to the employer's customers -- or, most
> likely, some combination of the three.
Of the three, I'd suggest the first is _not_ the likely place... :)
It's the same argument that businesses pay taxes -- sure, sorta', but
that money isn't money they printed for the purpose.
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