Got this via email:
Who benefits the most from a minimum wage increase?
Here are some back of an envelope calculations:
40 hrs a week X 52 weeks = 2080 hrsFICA: employee tax = 6.2%, employer = 6.2%, total 12.4%
SECA: employee = 1.45%, employer 1.45% total 2.9%total FICA/SECA combined = 15.3%
current govt take
2080 x $7.25 = $15,080.00 x 0.153 = $2,307.24proposed govt take
2080 x $10.10 =$21,008.00 x 0.153 = $3,214.224Net gain for govt = $906.984
now just for fun lets index the minimum wage to the rate of inflation, who else gets an automatic raise with that?
Government Union members!
our reliable MSM sources assert that 28 million workers will benefit from the new $10.10 minimum wage. If all those people are working part time (see obamacare) then FICA/SECA will get an annual influx of $12billion or more of new revenues into that lockbox Al gore was telling us about
Static analysis.
When the minimum wage goes up, employers cut hours and positions trying to keep the net payroll expense to employer roughly constant.
Same percentage tax on higher hourly wage times fewer hours and workers = net revenue to government will remain roughly constant.
Net government expenses, however, will increase as laid-off workers collect welfare and reduced-hours employees qualify for Obama-care subsidies.
I have always understood that we import so much from China and other countries because American workers are paid too much, making home grown products unprofitable and impractical to market. I wonder how the proposed minimum wage increase will impact that already dismal practice?
unintended intended consequences
unintendedintended consequencesSorry, fun with tags. Hope this one works.
Beneficiaries are not primarily SEIU, but rather Democratic politicians whose electoral base are low information voters who do not contemplate that their work may not be worth $10.10/hour, and will vote for the people who took their chance away because…..”that guy’s giving me a chance.”