What I can’t understand is why so many people are crying that minimum wage is too low. First of all, what people don’t realize is that if an employer has to pay his/her worker more money in order for that employer to keep his/her margin of profit he/her will have to raise the price on his/her product. So getting a raise in the minimum wage doesn’t amount to anything except to pay more for what you get plus more for income tax and sales tax. The government benefits from extra tax but for the wage earner, prices go up to offset the gains of the wage increase. Plus taxes go up. People may actually be worse off when the two effects are combined.
So can anyone tell me where the logic is in raising the minimum wage? This is why today the prices are sky high and also come tax time a person has to pay more income taxes too (more money, more income tax). Even a 25 cent per hour by the end of the year raises the amount of tax that you have to pay. So you get a raise and what happens? You end up by paying more for a product and pay more taxes. The results are you get more money but pay out more so you have less to live on than you did before the minimum wage was raised.
The government doesn’t mind in raising the minimum wage per hour because by the end of the year they are the winners because of more taxes coming in. So the winner in all this the government.The losers are the workers.
Think about that before you yell for minimum wage increases.
That’s my beef for today.