Minimum Wages Increase Unemployment; Implement Fair Tax instead


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.

Follow me on Twitter @Economics501

Advertisements

About economics501

1 - free market Capitalist; 2 - Fitness Entrepreneur; 56 years old, VP at an Investment Bank in NYC, ex Venture Capitalist, happily married with 2 girls. Education: Rutgers and NYU. I allow Ted Hruzd, my friend to blog at will here. He has many posts here. I have known Ted since we were both students at NYU. Ted also works for an Investment Bank as a VP in Equity Global Markets. ------------------------- I was very very Socialist leaning as a 22 year old. I then strongly believed in Gov role in helping the poor. However, as a USDA Child Nutrition Programs, I personally accounted for millions of fraud, abuse, and waste of tax payer money. I came to believe that the poor would be best served with less Gov programs and more with direct aid via tax system. Then after 5 years I became a free market capitalist, was a venture capitalist in 2007 and helped start 2 high tech companies. I dedicate this site to champion free market capitalism as the best road to Prosperity. Please join in. If you disagree, fine, but please post with dignity and class and be civil. Argue with facts always.
This entry was posted in Tax Reform and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s