Wednesday, July 26, 2006

2696 The real minimum wage

Dick Morris suggests it should have been indexed to the cost of living rather than givin one-shot increases, but figures the real minimum wage as:

"Much of the debate over the minimum wage is, of course, obviated by the earned-income tax credit which kicks in for all minimum-wage mothers. The credit, plus Medicaid eligibility, plus food stamps, plus day-care allowances, plus rent subsidies, plus exemption from income taxes, means that those who earn the minimum wage really have a pre-tax income equivalent over $20,000."

Tell that to beginning librarians and school teachers who earned a master's degree to earn about that much.

1 comment:

murrayT said...

That's kinda like saying if you make a million dollars you should send $800,000 to the IRS cause everybody knows you can live quite well on $200,000. Hmmmmm... maybe that's not a bad idea since I never made a million dollars.
Doesn't idiot Dick realize that if they raise the minimum wage that some of theses people would no longer qualify for the other entitlements? They even might have to pay some taxes!