This is precisely the reason why minimum wage should be....drum roll.....
closer to $5.50 an hour
WE MUST, then, LINK a higher progressive tax rate to how well they pay their employees!!!!!
If a company is making more than $415,000 (taxable income) then they should start paying a 'regional livable' wage*, 80% of individual health insurance benefits, and maintain 80% full-time employment or pay a higher 50% tax rate. The way to do this is set the top rate at 60% and if the company 'chooses' to comply with those three things above, they get a 40% tax credit so their taxes are lowered to 20%
That would have multiple effects
- Highly profitable but low wage, little if any benefit 'model' companies would have to 'slow' down their growth and either a) pay livable wages or b) pay more in taxes to 'transfer' to their very employees who are not making livable wages - otherwise... let me send those companies the welfare bill
- With a 'regionally' defined livable wage (I use 2-3 times the poverty rate as the 'livable' base line, inflation adjusted of course) those very employees that 'ultimately' would be working for that 'better' company would, actually, be no longer 'eligible' for welfare... hint hint nod nod wink!!!! that was the reason for the attempt at increasing the minimum wage in the first place
- Spreads the 'wealth' so to speak... those companies that just say 'screw i,' I don't want to expand to pay those taxes' either sends the money back to the very labor that produces that wealth OR, in this story's example, puts more money into that local economy through either more business competition or labor growth
Unfortunately, both the liberal left and the radical right do not understand that concept...
Without 'appropriate' taxes (societal regulations) 'free' markets (via collusion and lobbyists) WILL push down and out any 'small time' businesses... which is where our real strength... as well as weakness... of our economy lies...
Therefore, there has to be balance... and that balance is best managed through linking employers' taxes to the quality of their employees compensation.