re: Conservative solution to minimum wage increase...

quote:

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how about we just eliminate the income tax for everyone making less than 50k per year?

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You don't pay a lot of income tax on $50k as it is, TCT, about $5500 or so, give or take, for a single filer - not even $500 a month.

Of course payroll tax takes another 7 2/3% bite or whatever.

Problem is - you have to then jack up the taxes on the top brackets which are back up to 33%, 35% and 39.6% for "millionaires and billionaires" - i.e. over $400,000.

I know this isn't going to generate a lot of sympathy, but put yourself in the place of Mr. X. He has a going concern and is the president/CEO of a company he owns 100%. He draws a salary of ~$800k. He's okay up to about $200k (depending on deductions - he'll probably clear about $140k) - then he pays an increasing share over that - he'll clear less than $400k out of the next $600k.

At a certain point, doesn't it create a disincentive to working hard and generating more economic activity? And, while a person is doing quite well at this point, he or she is still solidly in the middle class - although if this is sustained and invested well, that could change.

ETA: My point is - everyone should have skin in the game. A flat tax would be much better.