Will a tax cut for the middle class hurt wages ?

[Blarch]

I heard Thom Hartman make this argument on his radio show.

I make $50,000 a year

Taxes take $25,000 a year

I take home $25,000 a year


I receive a tax cut and now take home $33,000 a year, but my boss knows I will work for $25,000 a year.

Wages in general become stagnant, or even reverse because of the tax cut.

[ben_meyers]

1. You mean the Thom Hartmann

With his C.H. (Chartered Herbalist) degree from Dominion Herbal College, an M.H. (Master of Herbology) degree from Emerson College, and a Ph.D. in Homeopathic Medicine from Brantridge in England.

What the hell would prepare him to expound on economics?

[DrToast]

2. No

No, that's ridiculous. That's not how wages are set.

To see why, turn the situation around and ask the same question. How can your boss lower your salary when you already know what he/she would pay?