Letter: Disadvantages to minimum wage increase
There is a lot of talk about raising the minimum wage in Linn County as well as nationally by Hillary Clinton and the Democrats.
The increase will benefit workers, right? Maybe. With that increase in wages comes an increase in state and federal income taxes, payroll taxes, Social Security and Medicare taxes for the employee and employer. So what happens? Businesses need to cut back hiring or lay people off. They also need to increase prices (which increases sales taxes).
The wage increases and price increases are basically a wash for the working person. You make more money, but spend more for everything you purchase. There is collateral damage. The retirees and elderly, those on pensions and fixed incomes who don’t get that raise in pay, but get to pay the higher prices for everything they need to survive.
Who is the big winner when it comes to raising the minimum wage? The tax man. Once again, the government is pushing an idea that only seems to benefit its own wallet.