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The Effect Of Minimum Wage On Taxpayers

1302 words - 6 pages

According to the United State Department of Labor, the effective date of the Federal Minimum Wage Rates under the Fair Labor Standards Act was October 24, 1938 which started at $0.25 per hour and rose as the years go by. According to the bureau of labor statistics, as of today the percentage of minimum wage earners is said to be 64% earning at or below the minimum wage; also, 63% works in restaurants, bars, retail stores and so on. Also, according to the bureau of labor statistics in 2013, out of the 143,929,000 people that are employed in the United States, 52.8% or 75,948,000 are paid at an hourly wage and 3,300,000 or 4.4% of the 75,948,000 earned at or below the minimum wage. ...view middle of the document...

The report was basically about the effect that Wal-Mart’s low wages have on taxpayers. Taxpayers are basically subsidizing Wal-Mart having the tax they going to government in order for them to aid those individual working at a low wage. One out of ten people who work in retail in America is employed by Walmart. Even though their employees have complained about being trapped, the company does not care and are not trying to stop these complaints. Despite the 8.6 percent increase in profit made during the fourth quarter of 2012 reported by Wal-Mart, no improvement in wages and benefit has shown. According to the report by the Democratic staff of the U.S. house Committee on Education and the Workforce, they believe that Wal-Mart being the largest retailer, they could use that to influence creation of Jobs and raising wages but they choose not to do so, instead they holding down wages. Workers who make more are in less need of public assistance which is funded by the money from taxpayers, so increasing wages may promote economic growth. In my opinion the income gap give certain people a sense of superiority instead of equality in the workplace especially among men and women.

According to attorney Damon Silvers, policy director for the American Federation of Labor-Congress of Industrial Organization, about thirty years ago, minimum wage was predominantly for people who were just starting out in the workforce. According to analysis, if inflation had kept up with inflation, as of today, it would have been $10.74 which would have been extremely helpful to struggling families making minimum wage, while trying to keep up with inflation. Having so many older individuals with so much more experience working at a minimum wage denies those who are younger such as 16 years old young adults the opportunity to gain the skills and knowledge they need to be successful in the future.
Minimum wage is said to be helping the poor, but in reality it is not, it is keeping them poor. With the amount they are receiving, they do not have the opportunity to get out of poverty unless they are fortunate enough to find a better job that pays them more, that will them move up in life and live comfortably without having to need help from the government living on welfare and public assistance. 16 year old do not usually care how much they get paid, because some just see it as spending money that they do not have to ask their parents for. So in my opinion I believe that minimum wage should be just like it was years ago, for people that are just starting out with no experience. If that were the case, then taxpayers would not have to subsidize...

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