My letter was published today in a South Jersey newspaper: http://www.nj.com/gloucester/voices/index.ssf/2012/10/letter_minimum_wage_laws_have.html
I totally disagree with Shelby Frederick’s Sept. 28 letter supporting minimum wage increases. Empirical data show minimum wages increase unemployment. The ripple effect of this includes an increasing dependency on government, decreased economic growth, decrease in tax revenues and increase in government debt.
Free-market capitalism is what made the United States the great economic power and envy of the world. Let our market economy work out prices and wages naturally.
There is another solution for those whose skills at present do not match a salary level at least up to the poverty level. This solution is a major aspect of the “Fair Tax,” in Congress as HR25.
This bill provides all with “prebates” up to the poverty level to offset its key measure, which is a revenue-neutral consumption tax replacing our current tax system. It replaces all current personal and corporate federal income and payroll taxes. It is progressive because of the prebates.
The fair tax bill also eliminates almost $1 trillion in wasteful tax breaks, which likely decrease our economic growth. The fair tax rewards success — income — thus generating stronger economic growth and more opportunities for all. I encourage all to research the Fair Tax further at www.fairtax.org.
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