Raising Minimum Wage Can Yank Millions Out of Poverty and Jump-Start Economy

[Fuddnik]

4. Not to mention the additional payroll taxes generated for SS and Medicare.

Take some hypothetical numbers.

Assume we have 100 million workers in this country. I'm not sure of the exact number, and it's too early to dig it up (for me anyway).

Now assume that approximately 30% of those are earning minimum wage. That's 30 million. If those people all had a $1.00 per hour raise. Just using minimal figures here. Assume that each worker works approx. 2000 hrs per year (40hrs x 50 weeks). Each worker would generate an additional $140 per year in SS taxes (employee side only), $280 with the employer contribution.

This would add $4.2 billion per year in SS taxes on the employee side. $8.4 billion total.

That's with just a $1.00 increase, and when you add the effects that the minimum has on raising other wages, it gets much bigger.

Instead of Ryan and Romney trying to turn us all into serfs, this would be a more sensible solution for SS and Medicare. Not to mention economic stimulus.