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Originally Posted by jimbob
my personal experience is that loyalty is not rewarded - it's only when you leave that you get offered more - and i don't think that will change whatever the tex system. If they think you're going to work for them forever they won't try to encourage you to stay. and what's wrong with a taxable raise as a form of encouragement? you still get more money! anyway, the tax regime is already factored into the labor market - if we currently accept a raise of $100 after tax then the market will support a raise of $100 whatever the rate of tax. so you'll be unlikely to get more but your employer will benefit by the amount of the tax reduction.
by the way, there's no need for tax at all in an economy where the state rather than the banks creates the money.
naff looking website but the ideas in it are pretty good.
http://www.xat.org/ |
There used to be company loyalty, the problem is companies don't show loyalty to their workers ("Everyone is replaceable" and/or threatening to close) and workers are always looking for someplace better.
If you offer tax free raises to stay it may promote loyalty. As for encouraging you to stay, how do GM, Ford, and so on encourage? People are going to leave no matter what, and people are going to stay no matter what. It's the nature of the beast.
$100 an hour raise, yeah that may affect things. A 50 cent an hour (if that, most places you're lucky to get 10-25 cents) raise twice a year isn't going to cause massive inflation.
Something has to be done to stimulate the economy, someone has to be creative and find a way to keep jobs here, keep pay at a decent level (every decrease in pay hurts the tax base as much if not more than a tax cut).