Conservatives argue that although employers must match their employees contributions, it still is advantageous to hire more workers because the overall corporate income tax is greatly reduced.

Question

Quizplus · Accepted Answer

The argument that hiring more workers reduces overall corporate income tax due to employers matching employee contributions is incorrect. The primary reason companies hire more workers is to meet operational needs, not tax benefits. Employer contributions to things like Social Security and Medicare (FICA taxes) are indeed matched by employers, but this does not directly reduce corporate income tax. Corporate income tax is based on net income, not on the number of employees or the specific contributions to employee benefits.

Conservatives Argue That Although Employers Must Match Their Employees Contributions