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Article
Union Myopia and the Taxation of Capital
Journal of Social, Political & Economic Studies (1995)
  • DWIGHT LEE, Southern Methodist University
  • ROBERT L SEXTON, Pepperdine University
  • PHILIP E GRAVES, University of Colorado at Boulder
Abstract
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,
  • incentives,
  • wages,
  • taxation of capital,
  • myopic discounting
Publication Date
Fall 1995
Citation Information
DWIGHT LEE, ROBERT L SEXTON and PHILIP E GRAVES. "Union Myopia and the Taxation of Capital" Journal of Social, Political & Economic Studies Vol. 20 Iss. 3 (1995)
Available at: http://works.bepress.com/rsexton/36/