Reply #80: You make the following statement and this is where we may not be

[truckin]

connecting.

Now you come along and raise his taxes by $50k

You don't raise a companies, or individuals, taxes by a set amount. Taxes are calculated as a percentage of income. I assume you know this but It's not clear. A company tries to maximize pre-tax income. If a company can create $70K in extra income by hiring an employee and paying that employee $50K, including benefits, they will do it and net $20K in extra profit. Whether the tax rate they pay on that extra is 35% or 40% is not going to effect the decision to hire that worker.