Our persistent fiscal issues reflect a tension between reducing taxes to promote the economy and providing social services for the population. A key factor in this equation is the growing dependency of working Americans on these social services - which, in turn, is caused by the steady erosion of inflation-adjusted income and employee benefits (e.g., sick time, vacation time, paid maternity leave, and healthcare). Workers whose wages are incompatible with these costs increasingly depend on government services.
This tension can be resolved through corporate tax policies that are proportional to employee compensation. Companies that choose to skimp on wages and benefits should be required to pay more (via taxes) into the infrastructure on which their undercompensated employees must depend.



