Divert business tax write offs from frivolous business expenses to employees cost like wages and benefits. I believe this would encourage paying employees more if those costs could eliminate some of the taxes paid on their profits. Some examples of frivolous business expenses could include things like meetings, business trips, catering, company cars, advertising, and maybe some aspects of research and development. Also eliminate payroll tax as this tax cuts directly into wages.I am not an expert on corporate or business tax law but believe these ideas to have some merit. I would encourage anyone with more detailed knowledge on this subject to modify my proposals with any better ideas.
Wages and employee benefits are already deductible business expenses - expenses for things like advertising, vehicles (some companies cannot operate without vehicles), and research and development are not frivolous. They are critical to the growth of most companies. A national sales tax that eliminates all the other taxes (SS, Medicare, income tax, etc.) and regulatory fees that are currently heaped on everything, would be the most straight forward way to address direct wages. Businesses should be allowed to deduct expenses -those deductions impact the final cost to produce their goods and services. A national sales tax would be charged only at the time of sale, not on materials, labor, operations, utilities, etc. , like they are now.