Abolishing the minimum wage will allow businesses to achieve greater efficiency and lower prices. When you force American companies to pay a certain wage, you increase the likelihood that those companies will outsource jobs to foreign workers, where labor is much cheaper.
By The Freeze|Men With Foil Hats
Hong Kong had a flat tax of 17%. The same for persons on their wages and the same on companies for their profits. They were collecting so much money that they REDUCED it to 15%!!
At 15% there is so little incentive to cheat and or pay lawyers to evade the system. As a result their economy is far more competitive than ours.
So yes, flat tax is the way to go. A simple postcard or online form ought to suffice. You could cut 95% of the IRS away and computerize the entire operation. Auditors are needed because tax law is so incredibly complex and messy. Incredibly numbers of lawyers practice tax law. This does not make our country competitive. Think about if someone has the brains to pass law school it means they are probably pretty bright. What if they were a doctor, or a scientist, or in some way contributing in a more beneficial way to our economy. Yes we do need lawyers, but not tax lawyers.
Up until the presidency of Andrew Jackson the entire Federal Government was totally, 100%, financed by customs fees. Thats how small it was and how well it worked! There is so little need for a massive Federal Government. The power must lie with the states. Also there was no debt until after Jackson.
In the 170 years or so since Andrew Jackson’s presidency, if you add up all the debt racked up, even under Reagan, all the way to Bush, in those 170 years, its still less than Obama racked up in just under two years as president. Its mind boggling how much it has gone up. From about $5 trillion to $12 trillion and counting.
You know of course that you can’t hire even an illegal alien for minimum wage right? Well but not around here anyways 🙂
Setting artificial constraints on labor markets goes against common sense and basic rules of capitalism. What you want are free labor markets. In a free labor market, if the economy is healthy, an employer needs to compete for employees. That leads to rising wages. In a bad market employees need to compete for jobs and that leads to the lowering of wages – although in practice and actual experience, wages that go up tend not to go down, except in very extreme cases.
The goal of the minimum wage was to set a price point where someone could survive on that, sort of a ‘living wage.’ But it also prevents employment too. There are also so many work around’s available to companies that want to hire and not pay minimum wage, aside from hiring illegals. They can hire people on as independent contractors and pay them per part produced. This is very common in the New York garment industry. In fact one of my first paying jobs was for the Oceanview School District in Huntington Beach where I was paid $3 bucks an hour, and the minimum wage at that time was $3.40 per hour. I worked as an independent contractor. And they got away with it.
So if the minimum wage is set too low, its ignored and employers pay the prevailing wage. If the minimum wage is set too high, it discourages employment and employers who can only afford certain amounts will always find loopholes.
Ultimately, the minimum wage has meant nothing.