Wage hike won’t help workers
There is talk about raising the minimum wage again. If you raise the minimum wage, the worker at best will get 80 percent due to federal and state taxes.
The cost to the employer will go up by 120 percent due to federal and state taxes on the wages. Yes, the cost of a burger will only go up by 25 cents as stated but so will the fries to go with it, and everything else (milk, eggs, bread) will go up by a few cents.
All of those few cents once they finally work through the system will be more then the wage increase. The only entity that will benefit is government. They will be able to tax 100 percent of the wages. They will also have a big windfall because the excise tax will be on all of the increases in the price of goods and services.
Government will also benefit from the fact that their liabilities to the retirement system and the money owed on bonds can be paid back with cheaper dollars. The end result is government will be the big winner and the worker will actually have less buying power.
What is really needed is government employers and unions to work together to make sure the educational opportunities are available to help people improve their skills. They also need to get into the schools and help the youth learn about different career paths from those who are actually in the workforce. This will help break the cycle.
Al Spencer, Kapaa