HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Tax cuts offer opportunit...

Sat Dec 30, 2017, 04:11 AM

Tax cuts offer opportunity to raise minimum wage

That is not the only reason for a raise, though. Raising the minimum wage has a number of positive impacts in addition to improving workers' lives (though it will achieve that laudable goal too).

First, it will decrease the number of Americans who are working poor and, as a result, reduce the number of Americans who need government assistance programs, like the Supplemental Nutrition Assistance Program. Next, raising the minimum wage will increase the amount of money spent on goods and services, which drives the economy.

Finally, raising the minimum wage provides a level playing field for all competitors. Without it, a company that wants to raise its hourly wage may decide against it out of fear that less scrupulous competitors will not follow suit, undercutting them in price. If all competitors must pay a similar base price for labor, then the company that wins is the one that produces the best product.

While we are on the subject of businesses and labor costs, we should take the advice that the late Subway CEO Fred DeLuca gave on CNBC in 2014 and index future changes in the minimum wage to inflation, "that way everybody knows what they can count on." Both employers and employees can plan for the future.

Read more: https://www.dallasnews.com/opinion/commentary/2017/12/29/tax-cuts-offer-opportunity-raise-minimum-wage

1 replies, 888 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 1 replies Author Time Post
Reply Tax cuts offer opportunity to raise minimum wage (Original post)
TexasTowelie Dec 2017 OP
Amishman Dec 2017 #1

Response to TexasTowelie (Original post)

Sat Dec 30, 2017, 09:09 AM

1. its a good idea but it has to take into account local cost of living

$15 an hour out here in the countryside is very different than $15 in Philly.

It would be complex, but my thought would be something like this.

Set a baseline national minimum wage that works almost everywhere ($10 an hour maybe) and index it to inflation (and not that chain CPI bullshit that understates inflation)

Then a modifier is applied to the national minimum wage for counties based on the median income's deviation from the national average. Median income is 50% above the average? then the minimum wage for that county is $15

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread