Tuesday, August 24, 2010
No Tax Tuesday: The Minimum Wage Tax
Image by Poldavo (Alex) via Flickr
Yea, yea I know that the minimum wage law is not officially a tax. But, because it is forced upon employers to pay employees a minimum wage, it acts like a tax.
Now, I know some of you bleeding hearts out there will ask,”But don’t you think people should earn enough to provide for themselves and there families?” Who said they didn’t ? Conservatives believe even more strongly that everyone should earn a fair wage for their services or product. That is why we know that raising the minimum wage is a farce and hurts those it purports to help more than it helps.
Why I know that minimum wage increases sound good, in reality, like all other liberal ideas, hurts the most the ones it profess to want to help.
It is pretty simple actually. When the minimum wage increases the price for any goods or services that rely on minimum wage employees rises also. The price rises because the cost for labor is part of a simple formula used to calculate profit. Let’s take McDonald's for instance. McDonald’s has been around for a long time. Their business model and profit formula is set. So, anytime the government raises the minimum wage, the price for a Big Mac rises also. Because McDonald’s needs to at least maintain its profit margin if not increase it.
Now, let me ask a question. Who does it affect more when they go to buy that Big Mac for their children, the minimum wage earner or the “wealthy” wage earner? Isn’t that a no brain-er? Of course the minimum wage earner will feel it more! Yes, s/he makes more, but everything s/he buys costs more. So, it doesn’t help the minimum wage earner, it only frustrates them because while they are making more money the end result is zero gain and the carrot stays the same distance away.
Now I know that liberals will blame those horrible capitalists (who provide jobs) for being greedy. Please, grow up. Just because someone wants to make a profit, which is another way of saying make a living and provide for their families, that doesn’t not make them an evil person.
The minimum wage “tax” hurts, it does not help.