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Zeno's do-gooder tax paradox

By Jeff Trexler on April 2, 2009 1:05 PM | | | Comments (5)

In this video, Southwest shows employees receiving unexpected $10K bonuses. The promo promotes the image of a caring corporation, something that can be a powerful draw both for employee retention and consumer purchases.

One other thing that catches my eye--the added blurb that Southwest cares so much that it paid the employees' taxes on the bonus. Which is cool and all, but the tax paid theoretically counts as income to the employee, which in turn is taxed. So let's assume Southwest paid that tax--this, in turn, would be taxable income, which in turn . . . .

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