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.

Bill Stepanek

Cedar Rapids

CONTINUE READING

MORE Letters to the Editor ARTICLES TO READ NEXT ...

It has been said that a camel is a horse designed by committee. Some Cedar Rapids City Council members want an active role on the school district's plans to close, rebuild or renovate several schools. They argue schools have major ...

I have two sons from Cambodia, both of whom attended and loved Johnson. My oldest, Tim, graduated from Washington and is at UNI. My youngest, Chris is a senior at Washington. I have been president and treasurer of Johnson PTA. I h ...

Give us feedback

Have you found an error or omission in our reporting? Tell us here.

Do you have a story idea we should look into? Tell us here.