So the Obamunists want to increase the minimum wage to $10.10 an hour.
My question is what makes $10.10 the magic number? Why not 10.08? or 10.14? or $28.00/hr? or 60.00?
If raising the minimum wage doesn't increase unemployment, let's raise it to where everyone is rich.
Regardless, let's assume that you are a single mom slinging hash at a local diner for minimum wage (for the record most states minimums are higher than the 7.25/hr).
Let's do the wage calculation.
If she works 2000 hours a year earning 7.25/hr. That puts her at 15,000 a year. Hardly enough to feed a family. None the less, outside of FICA and medicare, that income is tax free.
As a result of her earnings and family size, when Jane Doe files her tax return, she'll get a refund of $7,184. None of which she paid into, and it's all tax free.
This is a result of the Earned Income Credit and refundable child credit
Divide that earned income credit and refundable child credit income by her 2000 hours of work and her hourly wage now becomes $10.84/an hour. Again, mostly tax free.
Now add to that number, subsidized housing, free school breakfasts and lunches, Medicaid, free Obama phones, food stamps, etc. and a truly working person can essentially net $20/hour after tax. All of which she would qualify for because of her diminished earnings.
Who wants to move up the food chain when you would essentially take a pay cut?
We don't need a minimum wage increase, we need to educate the public on the money people already get.
Friday, February 21, 2014
Posted by gordon gekko at 11:26 AM