Quote:
Originally Posted by Army_of_One  Lurker, you seem to know a little about taxes. I have a ? for you. Is the minimum wage increase also a tax increase for the gov't? I look at it like this: When Joe Grocery Store Workers wage's go up then that's more tax the employer has to pay the gov't on his wages. In turn to keep his profit level up Joe Grocery Store owner raises prices in his store resulting in people paying more sales tax because they are now spending more at the store. I haven't taken economics yet so I'm pretty slow on this topic but trying to understand how the things work.
Also if the gov't can set a minimum wage and it's not set based on the economy or market driven could they set a maximum wage? Could they set a minimum wage for different sectors? IE Nurse's, plumbers etc? Shouldn't the market drive the minimum wage? |
The simple answer is: "A rising tide raises all ships."
The 'cost of labor' should be market driven; as it has been since the bubonic plague until the birth of organized labor. We are seeing the effects of the extreme swing with organized labor as we watch Ford Motor Company's demise.