Union Myopia and the Taxation of Capital
Journal of Social, Political & Economic Studies, Vol. 20, No. 3, pp. 299-315, Fall 1995
17 Pages Posted: 4 Aug 2011
Date Written: 1995
After an extensive discussion of the nature of the interactions among unions, corporations, and government, we find that government in granting privileges to workers organized into unions implicitly taxes capital formation. The result has been to lessen the attention business decisions pay to the future, to substitute excessive wages for appropriate capital investment, and to reduce the competitive vitality of major U.S. industries.
Keywords: unions, wages, taxation, capital formation, international competitiveness, incentives
JEL Classification: D21, D23, D40, D78, M14, M52, L20, J31, J38
Suggested Citation: Suggested Citation