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Reader opposed to wage hike

by Dale HellewellRoyal City
| November 3, 2011 6:00 AM

In addition to not creating jobs, the $9 minimum wage does nothing to benefit the economy and places more burdens on business and/or the taxpayers.

At $9 per hour, an $18,720 annual salary leaves minimum wage folks eligible for food stamps, rent subsidy, and medical benefits not paid by the employer.

In most cases the government subsidies are greater than the payroll deductions for taxes and social security, leaving a negative tax benefit. The result is more taxes for private sector businesses and their employees that are not eligible for subsidies.

Based on 2010 census reports, only 30 percent of the eligible workers paid taxes and contributed to social security. Those eligible workers who do not pay taxes or contribute to social security, include welfare recipients, low income workers, and government employees whose pay and unfunded entitlements are paid with private sector taxes.

Government generates zero income. So government employees cannot pay taxes (or contribute to their entitlements) because taxes cannot be paid with taxes any more than you can pay credit card debt with another credit card.