Eliminate Income Tax for Workers Making Less Than $45,000.
Thomas M. Scarda, CFE
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San Fernando Business Journal reports that starting next year in California, a fast food worker may earn as much as $22 per hour or $45,000 per year. The median salary for a California Police Officer is $60,000, as a means of comparison.?https://lnkd.in/dMydr-N4. I am not an accountant however, I believe that if a person goes from earning $12 per hour to $22 an hour, they will be liable to pay more income tax at the end of the year. That is good for the Government, not good for workers.
If the government really wants to help low-wage workers, it should waive state and federal income tax for all workers across all sectors who make less than $45,000 per year. This would enable the worker to actually keep more of what they earn and spend more thereby helping to boost the economy. That is what we are trying to do, correct? Taxing people more is only good for the government, not the people.
Companies outside of the fast food industry will have to increase salaries to retain staff. Why would someone continue to work at Macy's for $18 per hour when they can make $22? This wage increase may seem like a creative way to increase salaries by adding artificial competition between companies and industries. The government can claim that they are helping bolster workers however, the price of everything will have to increase in that scenario. Having to pay more for everything and paying more taxes does not help the people. It helps the government.?#ifa2022?#ab257?#franchising?#CaliforniaRestaurantAssociation?#tax?#economy?#taxes