Posted by
Hig on Friday, December 29, 2006 10:37:50 AM
If anyone is naive enough to believe employers will retain
their lowest-paid workers after a minimum wage is imposed, they're deluding
themselves and no one else. Employers are in business to make money, not spend
money. If they can find a less expensive way to get a job done, they'll do it.
That means if the cleaning crew's salary expense just got increased by
legislation, the employer will cut the crew down enough to keep his (or her) budget in line.
Raising the minimum wage does not make the money appear in
the employer's wallet. Instead, it costs people their jobs! But those affected by minimum wage legislation don't know it or don't care, or don't believe it'll happen to them, because
most of them are entry-level with no experience, and are the same people who
believe that if they just "invest" enough money in lottery tickets,
they'll win.
Let's talk tax cuts for a minute: Why does a reduced tax
rate increase government receipts?? Because the tax burden is reduced, giving
consumers more spendable income and ... guess what? Sales increase. Ever hear the phrase,
"we sell at a discount and make it up in volume"? All that means is,
"if we can sell enough extra stuff by cutting your cost, we'll still make
the same amount of money -- everyone wins: you get a lower price, we still make
our profit." Most retailers know they'll more than make it up with additional sales volume.
Did you know that when the government reaches into a
corporation’s pockets by increasing corporate taxes, the corporation ends up
paying less tax? That’s because they don’t really pay tax at all. They figure
not only the cost of an item into the retail price, they figure their overhead
as well: shipping, packaging, salaries, etc., are all part of the consumer’s
purchase price. And taxes are part of that price. Corporations pass their tax
obligation along to their customers. Consumers pay all taxes. So when corporate
taxes go up, retail prices go up, sales go down, and less actual tax is paid by the
corporation to the Imperial Federal Government. (Thanks to Neal Boortz for the government's title.)
Want to make a difference? Look up fairtax.org. If this legislation were passed, consumer
costs would be cut so much that even with a national sales tax rate of 23%,
we'd see a net increase in our income. And low-income folks would actually lose
their tax obligation! Oh, and by the way: we'd never have to file another tax return ever again, and we'd never have to worry about whether we'd get audited if we claim a certain deduction.
Thanks for the soapbox. We return you now to your regular
programming.