RE: "They'll just raise prices if thy raise the minimum wage."
April 16, 2014 at 12:17 pm
(This post was last modified: April 16, 2014 at 12:24 pm by Heywood.)
(April 16, 2014 at 12:08 pm)KUSA Wrote: I'm thinking about how this negative income tax coupled with no minimum wage would work.
So everyone gets subsidized by the government to make a minimum salary. At the same time corporations can pay as low as they want. What will happen is the corporations will pay $1 an hour and the government will pick up the rest of the tab.
This smells like corporate welfare.
Negative Kusa,
The wealth that is redistributed from the rich too the poor cannot come from the government because the government does not create wealth.
It ultimately comes from the rich and the corporations who must pay higher positive taxes so that the poor can receive negative taxes.
If you insist on viewing the government picking up the tab for the poor...then be fair and see that it is the rich and the corporations who would be picking up the tab for the government.
Some of the advantages of the negative taxes is this.
1. It doesn't mess with the labor market.
2. It eliminates the need for social security, unemployment compensation, disability, welfare, WIC, Food stamps, heating assistance, housing assistance, tuition assistance, Obama phones, etc.
3. It eliminates all the bureaucracy and waste that comes with having to administer everything which makes up 2.
4. It closes the disparity in standards of living between the poor and the rich(with minimal impact to the rich).
