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Let free market work


Date published: 3/30/2014

Let free market work

Many people, including President Obama, want an increase in the minimum wage to $10.10 an hour.

This is a 40 percent increase in pay for those making the minimum wage now. Will everybody get a 40 percent increase? If so, then the bottom will still be the bottom and nothing changes, but prices and wages are still going up. And that means no gain for anybody.

So in order to have a gain, we will raise the bottom and leave everybody else the same, which means bringing the middle class down.

The minimum wage increase is just a smoke-and-mirrors Democratic policy. It's a hidden tax increase--not for those who are making minimum wage (for they will get a refund back), but for the people they work for.

This is because employers must match employees' taxes, which means that the business 940 form and 941 tax form will increase due to payroll increases, and workers' compensation and unemployment insurance will go up. These figures are all based on a percentage of your total payroll.

As with Medicaid, the feds are offering to waive these increase for two or three years. But when the bill comes due, who will pay?

It will be the middle class once again, for they won't see the 40 percent increase in pay but will see higher prices and higher taxes.

The Democratic polices are like a no-interest credit card for six months, then the rate changes to 40 percent after they get you hooked.

Most would not take such a credit card, so don't be a sucker for the same policies by another name.

Wise up, America. It's time to let free markets work and let pay reflect what a person or job is worth. The government shouldn't try to make a middle class from a door-greeter's pay.

Kirk Byers

Spotsylvania