[lotsofpulp]

> because years ago, when companies had high headcount, it was a way to make companies pay taxes.

What does this mean? Assuming you are referring to earned income tax, I do not understand how income tax is a way to make companies pay tax.

[beiller]

I can take a stab. I imagine, if everything else stayed the same (rent, food etc) and the government raised income tax, companies would be forced to pay more wages to cover the gap. IE most of the increase would come out of the employer's pocket, because there is a minimum they ultimately must pay in wages in order for workers to afford rent food etc, and if the minimum is not met, why bother working?