There has been much discussion in the news about the minimum wage aspect of the federal stimulus package. However, I have not heard much about two items.
- First is the question of who should be the primary supporter of employees, the employers or we taxpayers? Currently, taxpayers provide much more in healthcare, food stamps, rent assistance, etc. Meanwhile, the employer is counting his/her profits – and complaining about their high taxes. If they paid higher wages, many employees would be taxpayers rather than tax beneficiaries, thereby lowering employers’ tax burden (and mine).
- Second, employers complain they cannot afford to pay more, so will have to layoff employees. However, if employees are earning up to twice as much income to consume products, employers will need more employees to make and sell more products.
Sounds profitable to me, and might reduce my taxes – and yours.