Economy 52,861 Posted May 31, 2015 Share Posted May 31, 2015 http://www.courant.com/opinion/op-ed/hc-op-schiff-democrats-tax-low-wage-workers-0429-20150428-story.html Cant believe i forgot to report about this a month ago. But basically the Democrats from the State of Connecticut wants to impose a $1/h fee to any business (with 500 employees or more) if the worker is payed between minimum wage and $15/h They claim it will encourage companies to pay their worker more -------------------- Ok an employer wont raise a minimum wage worker by almost $6/h to avoid a $1/h fee I think this is a tax hike smoked screened as trying to help the poor. Might as well raise minimum wage by $1/h at least the worker is guaranteed to actually get the extra money stupid Link to post Share on other sites More sharing options...
MJHolland 12,725 Posted May 31, 2015 Share Posted May 31, 2015 Right. Because it is really smart to tax your way out of a recession. Good thinking.(Sarcasm) Link to post Share on other sites More sharing options...
Economy 52,861 Posted May 31, 2015 Author Share Posted May 31, 2015 Right. Because it is really smart to tax your way out of a recession. Good thinking. (Sarcasm) on top of that taxing the poor. they are making only low wage jobs more expensive. this means possibly less hiring, and people making more than minimum wage but less than $15/h might be hit with a pay cut unless they are really close to $15/h (like $13.50 lets say) and boss figures might as well give them that raise Raising minimum wage has pro and con... it makes labor more expensive, and companies may hire less or fire some workers and operate on abre minimum... but at least it has a silver lining... the ones THAT DO keep their jobs or managee to get hired get more money. So u gotta find the right balance of what a good minimum wage is... But this has no silver lining. You become a more expensive employee without even making more money cause the fee only goes to the Government thats why i say this is a tax hike smoke screen. If it really was to help poor just raise minimum wage. Whats this gonna do? Link to post Share on other sites More sharing options...
Arturo 40,746 Posted May 31, 2015 Share Posted May 31, 2015 Doesn't raising wages just worsen inflation? Link to post Share on other sites More sharing options...
Economy 52,861 Posted May 31, 2015 Author Share Posted May 31, 2015 Doesn't raising wages just worsen inflation?yes but not necessarily proportionately for everyone... Some stuff is produced by workers who get payed way more than minimum wage and their pay wont change from a minimum wage hike... also imported goods u buy at the store wont be affected A 20% minimum wage hike wont cause 20% inflation necessarily. I might only raise inflation by say 5% (i cant say exactly, im just throwing numbers here) So the person getting 20% minimum wage hike with 5% inflation still gets proportional 15% purchasing power raise Hypathetical scenario. lets say minimum wage is $10/h and u wanna raise it to $13/h - person making $10/h gets raised to $13/h (new minimum wage) and gets a 30% pay increase- person already being payed $13/h might only get $2/h increase just because his job isnt meant to be minimum wage but he might not get a proportional raise. he got a less than 20% raise- Person making $20/h might not get a raise at all... the boss doesnt even think about it So there will be inflation... but not all labor costs in all income brackets go up the same, it gets diluted the further up the income brackets you go. So the people at the bottom get the biggest raises so inflation is still worth it for them because their raise is bigger than inflation... While people at top will be hit with inflation but no raise So it is an equalizer still despite inflation. Link to post Share on other sites More sharing options...
jsn 1,669 Posted May 31, 2015 Share Posted May 31, 2015 That doesn't make sense at all; like you said, why would anyone rather pay employees several more dollars instead of just paying $1? Link to post Share on other sites More sharing options...
Gagamel 3,410 Posted May 31, 2015 Share Posted May 31, 2015 Doesn't raising wages just worsen inflation? Any resulting inflation will be less as a percentage than the wage increase. Mostly this reduces the ratio of lowest incomes to average incomes and the ratio of lowest incomes to highest incomes. Edit: Economy said it better Link to post Share on other sites More sharing options...
Economy 52,861 Posted May 31, 2015 Author Share Posted May 31, 2015 Any resulting inflation will be less as a percentage than the wage increase. Mostly this reduces the ratio of lowest incomes to average incomes and the ratio of lowest incomes to highest incomes. Edit: Economy said it better i edited it. i think if i illustrate it with a hypothetical scenario people understand it better Link to post Share on other sites More sharing options...
Economy 52,861 Posted June 1, 2015 Author Share Posted June 1, 2015 That doesn't make sense at all; like you said, why would anyone rather pay employees several more dollars instead of just paying $1? thats why i said its a smoke screen... a way to get more tax revenue while appealing to their poor voters making them think they are doing something for them Here in my Province (Ontario) minimum wage is $11/h due to be raised to $11.25 in September (around $9 US)... I think its at a good level I wouldnt support raising it further because many low skilled jobs simply arent worth more than that and raising minimum wage more will simply prevent hiring in many cases... however, if i had to pick between this crazy idea and raising minimum wage further id take the minimum wage hike. Minimum wage at $12.25/h would cost companies the same as $1.25h plus the fee so might as well guarantee that workers get it duh Link to post Share on other sites More sharing options...
Hauser 1,262 Posted June 1, 2015 Share Posted June 1, 2015 I live in Connecticut and we are infamously known for taxing anything and everything so this doesn't surprise me, however I don't see how raising the minimum wage to $15/hr is bad thing. Hopefully then most of us college students and grads will be able to afford decent apartments with the jobs we have now. Link to post Share on other sites More sharing options...
Economy 52,861 Posted June 1, 2015 Author Share Posted June 1, 2015 I live in Connecticut and we are infamously known for taxing anything and everything so this doesn't surprise me, however I don't see how raising the minimum wage to $15/hr is bad thing. Hopefully then most of us college students and grads will be able to afford decent apartments with the jobs we have now. thats assuming a job to begin with. You have to understand many jobs arent worth much... and if ur gonna make low skill jobs that expensive companies might choose to operate on as few as possible even tho it might affect their customer service because it will simply cost too much. So over-all hiring would drop However, my point was, if your GONNA raise labor costs, at the very least give it to the worker. Because at least the people that arent fired or that still manage to get hired, at least those people get payed more so theres a silver lining But what Connecticut is proposing would do nothing whatsoever to the worker because the fee would go to the government not the worker Also minimum wage is just over $9/h in Connecticut... if they raised it by $1/h to just over $10 it would still be a minimum wage within reason and as such, they should just do that instead of this dumb fee Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted June 1, 2015 Share Posted June 1, 2015 This is the part about Liberal leadership that bothers me. Taxes were originally imposed by congress as a 'necessity' to operate the government and pay for the military. George Washington told the 1st National congress that they better pony up, or the Army would quit, British soldiers would arrest them all and hang them for sedition.Now taxes pay for a huge civil dependency, infrastructure and military, plus a massive foreign aid program.Thats fine, I am proud to be a part of the system....Liberals use taxes as a penalty and a way to blackmail business and people to do things they want... No vote, no for the people, simply hog wash. like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 52,861 Posted June 1, 2015 Author Share Posted June 1, 2015 This is the part about Liberal leadership that bothers me. Taxes were originally imposed by congress as a 'necessity' to operate the government and pay for the military. George Washington told the 1st National congress that they better pony up, or the Army would quit, British soldiers would arrest them all and hang them for sedition. Now taxes pay for a huge civil dependency, infrastructure and military, plus a massive foreign aid program. Thats fine, I am proud to be a part of the system.... Liberals use taxes as a penalty and a way to blackmail business and people to do things they want... No vote, no for the people, simply hog wash. yes, its true in modern society, they HAVE to tax more than in the past because theres more things that need to be payed for. Before many ppl would live in a farm and be self-sufficient, now we have all kidns of services that must be payed for however, over-taxation, or a poor implementation of taxes is terrible... The Liberals in my Province destroy everything they touch... theyve screwed up hydro (which now costs 3X more than in Quebec and due to rise another 40% by 2018)... they have us deep in debt, manage to run budget deficits that are bigger than the Federal Government (how is that possible, i honestly dont know), and totally suffocate businesses with regulation When ever i read huge papers with tones of rules regarded to my work... 90% of it says "Ontario" not "Canada" I give up tbh. Theres nothing left to destroy where i live Link to post Share on other sites More sharing options...
MJHolland 12,725 Posted June 1, 2015 Share Posted June 1, 2015 Doesn't raising wages just worsen inflation?Adding on to what Economy said, the US is experiencing pretty low inflation levels. It might seem weird but inflation is actually something that is pretty necessary to our economy and if we don't have enough it could be pretty detrimental. Link to post Share on other sites More sharing options...
Economy 52,861 Posted June 1, 2015 Author Share Posted June 1, 2015 Adding on to what Economy said, the US is experiencing pretty low inflation levels. It might seem weird but inflation is actually something that is pretty necessary to our economy and if we don't have enough it could be pretty detrimental. that as well... and not all inflation is alike... inflation from higher wages is good inflation... better inflation than printing money with QE that is only used to prop up the bond market and equity markets Link to post Share on other sites More sharing options...
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