Florida Senator Marco Rubio gave a "Republican Response" to the President's State of the Union address. He said that taxes cause employers to reduce hours or lay people off. Others say that raising the minimum wage will mean layoffs. Let's take a closer look at that.
In Wednesday's post, What Do Republicans, Rubio And Rand Have If They Don’t Have Deficits? I focused on one line from Rubio's speech,
One line of Rubio’s stands out: “Because more government raises taxes on employers who then pass the costs on to their employees through fewer hours, lower pay and even layoffs.”
With this Rubio is trying to scare people who are worried about jobs. Business taxes are on profits. Good businesses employ the right number of people, so a company that is making profits isn’t going to reduce staff or hours. That is simply preposterous to anyone who has ever run a business.
I was in a local CVS store today. There weren't enough employees in the store, and there was a long line of people waiting to pay for items at the only checkout register. There was also a long line of people in line at the pharmacy. I saw a one person give up, leave their nearly-full carrier on a shelf, and just leave the store. I saw another person come in the door, take one look at the line and leave. I left without buying anything and went to a different store -- not a CVS, for what I was looking for.
Was this CVS "saving money" by employing fewer people? Or were they being "penny-wise and pound-foolish" and costing themselves business today as well as in the future?
How many times have you seen this happen at a business that is not employing enough people to "save money?? You are at a business, they don't have enough people working, and people give up and take their business somewhere else?