Mistake in Raising the Minimum Wage Essay

1063 Words 5 Pages
Would raising the minimum wage actually help the American economy? Some people believe it would take people out of poverty. Others think that it will make it easier for people to supply for their families. Many believe that it should have been raised with the price of inflation over the years. While any of these reasons might be true, there are still many consequences that could take action if minimum wage is raised. Most Republicans are completely against the idea of raising it while President Obama would like to raise it from $7.25 an hour to $10.10 an hour. Raising the minimum wage would cost jobs, place people in higher tax brackets, inflate prices, and create greater competition for jobs. Raising the minimum wage would cost jobs. …show more content…
(See Figure 2) Businesses also cannot afford as many workers when there is a higher minimum wage. For example, a business with fifty workers being paid minimum wage would like to expand the company. They cannot because now they have to pay those other fifty employees more money. Annie Lowrey says, “Businesses might then reduce their use of low-wage workers and shift their spending toward other things, automated systems. (Lowrey) A study done by Express Employment Professionals says that 54% of employers paying their workers the current minimum wage would reduce hiring if it is raised. (See Figure 3) Losing workers would be crucial to businesses big and small all over the country. Second, this increase results in people being placed in higher tax brackets. People being placed in higher tax brackets would result from a higher income. Also, tax rates could change because more money is being made. People would be at the same place they were at before minimum wage was raised. This would make the entire increase a pointless action. As your income increases, you could change tax brackets depending on you current income. If you are married and your total household income in $17,400 or less, you fall into the lowest tax bracket which is 10%. If you are single, then you would be in the 15% bracket. These different brackets are based on you yearly income. Most states will have an income tax for workers as well. This bracket could also change as

Related Documents

Tatuagens e arte corporal | Next › | PERSONALISED TEXT PHOTO NAME MUG Christmas Birthday Fathers Mothers Valentines