As 13 states plan to increase their minimum wage in 2014, I thought it would be a good time to debunk five of the most common minimum wage increase arguments that your Liberal friends are likely to throw at you this year:
Myth #1: “Tons of families are affected by raising the minimum wage”
Fact: Only 1% of hourly-wage workers in America are married people making minimum wage
Myth #2: “Most min. wage workers are working two jobs, tons of hours, and can’t make ends meet”
Fact: Only 2.6% of minimum wage workers are working over 40 hours/week
Myth #3: “Young workers make up a tiny part of total minimum wage workers”
Fact: People under the age of 24 make up over 50% of all minimum wage workers
Myth #4: “Minorities are hurt more by low minimum wages than white people”
Fact: White people make up 79% of hourly-rate employees, and 78% of min. wage employees
Myth #5: “Over 3 million people make the minimum wage”
Fact*: Only 1.6 million people actually make minimum wage, the rest make tips on top of their wage, but are included in the min. wage numbers that Liberals love to quote
*Author’s Note: I used the 3.5M figure for all previous stats, so that you could still make apples to apples arguments with your Liberal Friends
- Ron Paul: Raising Minimum Wages Appeals to Those Who Do Not Understand Economics (economicpolicyjournal.com)
- 13 states raising minimum wage Jan. 1; Oklahoma is not one of them (kfor.com)
- Ring in the new year with higher wages (msnbc.com)
- Democrats Turn to Minimum Wage as 2014 Strategy (nytimes.com)
This is an essay from someone who is destined to be in the 1% before long. This group, the 1%, has been vilified in the media, eviscerated by Liberal groups, and demonized through political rhetoric during the Obama years. Are these people really the devil? Or is it possible that they are exactly the kind of hardworking, down-to-earth, creative-thinking people who we need to pull our country out of the hole that we have dug ourselves?
– I am the future 1% – This is my story
– I’m 5 foot 2 – Studies indicate I will make $237K less than the avg. 6 foot tall man in my lifetime
– I started working at 14 at a fast food restaurant – I rode my bike to work every day
– I did not make over $5/hour until I had gotten three raises and an assistant manager promotion
– I worked full-time in High School while competing in sports and making the honor roll
– I never did drugs, partied, or drank in High School
– I am the future 1% – Should I have enjoyed High School more? Worked less? Partied harder?
– I got a promotion to manager at the age of 18, after working at the same place for 4+ years
– I didn’t get into my preferred college – I went to another school, quit for 1 yr before returning
– I was arrested for drinking underage during college – I decided not to let it define who I was
– I am the future 1% – Should I have given up when adversity struck for the first time?
– I worked full-time and slowly finished college in 6 years after much prodding from my parents
– I took a 100% commission job at a Fortune 500 company, fought hard for every meal for a year
– I was arrested again – I decided to make myself a better person instead of spiraling downward
– I am the future 1% – Should I have given up when everything seemed to be going against me?
– I got promoted after a year of outstanding work – putting in more hours than anyone else
– I moved to another Fortune 500 company, this time as a Bank Manager
– I bought a house at the height of the housing boom – I am currently still $50K underwater on it
– I took out over 80K in loans so I could quit my job and go back to school for my MBA
– I am the future 1% – Should I have saved my money, settled down, and stopped progressing?
– I received a Manager offer from another Fortune 500 company after business school
– I got married to the love of my life and bought another house in a small town
– I turned around two struggling business units, and quickly got promoted to Senior Manager
– I am the future 1% – Should I have just enjoyed the ride and collected a paycheck?
– I welcomed my first child into our family, and named him after my Grandfather
– My wife runs a small business while raising our son full-time – She is absolutely amazing
– Our current Net Worth is still below zero, though we are starting to catch up
– I am currently in the top 13th income percentile at age 32…
– I am the future 1% – Should I feel bad about what I have accomplished?
– Would you rather I fell apart after the arrests and became a burden on society?
– Would you rather I didn’t graduate college?
– I am the future 1% – Should I feel bad about working hard to get ahead?
– Would you rather I didn’t make an $80K bet on myself and my abilities?
– Would you rather I coasted along in mediocrity without ever offering my employers value?
– I am the future 1% – Why do you hate me?
During income tax debates, you will likely hear some Liberal politician spouting off about how income tax rates on the rich used to be much higher, and how Americans have “historically low” income tax rates at the moment. When dirty politicians make statements like this, they are counting on the fact that most Americans will not go back and research the history of the income tax. This article is to give you a little background when you are making your lower tax arguments against your Liberal counterparts.
Most Americans do not realize that the United States of America survived over 80 years before the very first income tax was enacted…and that tax went solely to paying for the civil war. The income tax was then repealed after the war.
In 1894, a Liberal Congress again tried to tax income as a way to pay its bills…but the Supreme Court ruled that it was unconstitutional.
It was not until 1913 (less than 100 years ago) that the United States enacted the 16th amendment, which made taxes on income constitutional. Even then, the rules were so generous that less than 1% of people actually paid income tax.
So, the next time a Liberal tries to use the argument that income taxes used to be much higher, remind them that before the New Deal, Social Security, Medicare, and Welfare programs that the Democrats love, America survived over 130 years (more than half of our entire history) without an income tax (except for a few years to pay for the civil war).
The next time an irresponsible politician uses the income taxes are “historically low” argument, make sure you let every know the truth about the history of the income tax. These income tax levels are HISTORICALLY HIGH! For more than half of our country’s history, there was no income tax at all!
And perhaps most importantly…
The next time a Liberal argues against balancing the budget, tell them that income taxes are not the way to do it. Cutting spending is the only responsible way to balance the budget. Please share this article with your friends!
This is a fantastic question!
There are many steps that could be used to bolster innovation in this country. Take, for example, the cash for clunkers and cash for appliances programs that the government put in place over the last few years. In the cash for appliances program, the $300 million in incentives lead to billions and billions of dollars in spending (e.g. $100 promo on a $999 refrigerator – The $100 that the US spent led to almost $1,000 in actual spending by consumers, or a 10 to 1 return). Compare that to the $300 checks the US gave out several years ago, which at best provided a 1:1 return, but we all know that didn’t happen because some people saved the money instead of spent it. Long story short, find a way to replicate the cash for appliances idea in a way to bolster innovation spending which isn’t already occuring. For example, could the US offer a $10 million dollar incentive to any new venture capitalist start-up that funds over $100 million in VC funds/year? This drastically reduces the risk level of the VC firm, but provides over $100 million in start-up spending (more than that, since the VC firm is unlikely to stop directly at $100 million in spending). Could the US go a step further and offer this to large companies who start a wing of their company to do VC investing in their industry? For example, would GE spend another $100 million in VC spending across their various industries if the US was going to give them $10 million and let them keep the profits from the VC wing of the company? Companies, like GE, have shown that they will do anything possible to take advantage of tax credits or government incentives. This seems like an idea that could bolster small-business investment all around the country in nearly every industry.
Other possibilities would be to provide tax credits to individuals who start businesses and spend $x amount of money. For instance, we gave people $8,000 to buy a home last year and people went crazy over it. What if we gave everyone a chance to get $8,000 in tax credits if they invest $50,000 into starting a new business? That would be an instant 16% return on the business-owner’s money. This type of incentive could cause someone who had been on the fence about starting the business to decide to take the leap. It would also stop us from spending money on extremely small businesses and focus more on businesses that were more likely to have employees.
One last idea, on the vein of how to create a more entrepeneurial culture, would be to alter the tax structure on VC-oriented investments. For example, right now you pay capital gains on long-term investments in established companies. What if that was replaced by a 5% tax on any investment that met certain criteria? A mutual fund that invested 80% of its holdings into VC firms, for example. This would cause many of the millionaires in this country to allocate the more aggressive portions of their portfolios towards these types of investments and would instantly increase the amount of dollars that VC companies would have to spend, which inherently would raise the number of small business owners in this country.
Anyway, I am not in government, so what do I know. Good Luck out there everyone!
Please follow this conversation on quora.com: http://www.quora.com/How-can-a-country-go-about-creating-a-more-entrepreneurial-culture/answer/Todd-Hagopian