Letters to the Editor

February 11, 2014 9:34 AM

Obama is right; increase minimum wage

In the State of the Union message, the president expressed a wish to increase the minimum wage from $7.25 to $10.10 an hour. Such an increase would have the following budgetary consequences. Of the $2.85 increase, approximately 15 percent or 43 cents would go to the U.S. Treasury every hour an employee works. Annually, the Treasury Department would collect approximately $875 in additional tax revenue from every employee affected by the minimum wage increase. The annual revenue increase to the Treasury Department would be several billion dollars. Additionally, many of these same people, because of their increased wages, would no longer qualify for food stamps or other tax supplements, thus reducing governmental expenses by several billion dollars. The increased wages would now put more disposable income in the pockets of the very people who generally frequent the companies who pay minimum wage and thus add to company sales.

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