What good does raising minimum wage do, if you are also raising taxes?

Question

And prices of average service and goods go up? I dont get it.

Answer 1

Bingo!!!

Answer 2

It equals out the economy. Raising the minimum wage has a very small impact on goods and services. And many who are on minimum wage don't pay a lot of taxes since they are on minimum wage. Most tax raises come from the top brackets. In Washington, where the minimum wage was just increased to $7.90, it was estimated that it wouldn't impact goods and services at all. It should be noted that the increase was from $7.15.

Any argument about raising the minimum wage can be countered with examples like Washington. There, the minimum wage is increased much higher then the federal minimum wage. Yet the economy is still functioning there fine, just like other states.

Answer 3

Minimum wage has been raised several times under different administrations, and it has not been shown to ruin a whole economy, even the raises that were much bigger than this one. It serves to make sure the workers of america are accurately compensated for services, and cost of living is taken into account. As far as raising taxes, I haven't seen that bill yet, what will be raised, etc...so I cannot make a judgment on that. I believe the first order of business for the incoming congress is to pass the minimum wage legislation, and I don't believe a tax increase is attached to that. Prices of average services and goods always go up, hence 'cost of living'. Minimum wage serves to make sure that the workers performing those services and manufacturing those goods are also included in the cost of living increases

Answer 4

Well, try taking care of a family on $5 or $6 an hour. God forbid some big company should have to pay a little more in taxes or the most wealthy has to pay more than one percent. It should be reversed, the poor should pay 30% of their salary as taxes and people making minimum wage should pay 1%. Maybe then some of the wasteful spending would stop and the govt could focus on actually helping people and run the country like they are meant to.

I know, thumbs down for me!!!

Answer 5

Since people who earn the minimum wage have more chance of getting a tax refund then having to pay, it does help lift up the lower class.

Answer 6

Raising the minimum wage hurts the people it is supposed to help - the lowest wage earners. This has been proved time and time again and is common knowledge among economists, but yet the gov never listens and often goes against economic advisers to do the politically popular thing - increase the minimum wages. It doesn't hurt businesses (most anyway), because they increase their prices to consumers to offset their higher costs. It's bad public policy in the long run - markets should dictate how much people are paid, not the government.

Answer 7

First, raising the minimum wage helps families that do not have funds for discretionary spending. Any tax increase tends to impact those on higher than minimum wage, because they have more income to tax, and have more discretionary spending that can be taxed through sales taxes.

Next, the Democrats have said they will take back the tax breaks given by Bush to the oil companies; they will stop the wasteful spending on no-bid contracts that are awarded to Bush's friends; and they will not continue the tax cuts that benefit the top 1% of the country.

They haven't announced any plans to increase income taxes.

Answer 8

Your right about the prices of everything going up. However please tax a closer review of taxes. They have been going up even before the minium wage went up!! Property taxes have been going up since the federal government cut back the education funding!

Answer 9

Theoretically it generates money flow which equates to more commerce, which is beneficial to an economy.
I agree taxation is undesirable, and should be minimalized.
However, the minimum wage is ridiculously low. So low that it is a joke. It was LONG overdue for a raise.

Answer 10

People just don't get it. With the rise of minimum wage, small buisnees is forced to close and the cost of merchandise go up. Then, on top of that, they increase our taxes. Why did we have an increase of minimum wage?

The biggest issue is we have so many ignorant people out there that don't know squat about basic ecomomics which allows politicians to say "more Money" to get the vote and leave them scratching their head trying to figure out how they are getting 50 bucks less than before.

Answer 11

its a way the government makes the people feel as if they are getting something, but in reality we are not. our constitutional rights say we the people can not be taxed on our labor without our consent but we are. and we are threatened with prison if we do not pay them. We need to fight for our rights which are being taken away from us daily.