There are more people than ever talking about income inequality. And that is great.
To really address this issue, it will take a combination of laws and initiatives. There is no one single …
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There are more people than ever talking about income inequality. And that is great.
To really address this issue, it will take a combination of laws and initiatives. There is no one single answer.
That said, something that simply must be a part of the solution is an increase in the minimum wage. Here is why:
The Earned Income Tax Credit (EITC) is a great idea. It puts money in the hands of the working poor.
We have an extensive program here in Johnson County designed to get people what they have coming.
Here is the downside – we all pay for it.
To illustrate: If I work at a job that pays me $15 per hour, I am barely able to get by, but I can make it.
Meanwhile, my employer carries the full cost of me getting by.
If I work at a job that pays $9 per hour, but I get $4,000 in EITC? Sure, it helps, but it has only lifted the effective income to $11 per hour.
Plus, the employer that only pays $9 per hour in the first place gets a big break.
Why? Because you and I and every taxpayer pays for the EITC. That doesn’t even account for the bureaucracy necessary to collect the taxes and redistribute the money.
Doesn’t it make more sense to simply require the employer in the second scenario to pay more?
Our first employer, who pays a decent wage, subsidizes the bad actor. Why do we reward this?
Corporate responsibility is at the lowest point since the election of Teddy Roosevelt.
It is time that corporations step up and pay decent wages. We don’t need to subsidize it; we need to require it.
The easiest and simplest way to take on income inequality is to raise the minimum wage.
It is not the only thing that needs to happen, but it might be the most important thing.