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Originally Posted by sgtdmski Congress is to blame for the low wages. But it is not due to the minimum wage, but rather by the high tax rates. Consider the fact that the employers have to pay matching funds to Medicare and Social Security for each and every employee. That total is near 10%. Eliminate the payroll taxes and most employees would be able to increase their wages. When setting a salary, a business takes into account how much they will have to pay in payroll taxes, without the need of having to pay this, either salaries would increase, or unemployment would decrease, as businesses would have more money to pay employees.
dmk | These days some small business owners are better off having the employee quit than to be fired because the unemployment insurance, or whatever it is is insane! All this bullshit effects how much the small business takes in, which in return effects everyone elses pay, or ability to hire another person. |