posted on Jul, 25 2014 @ 11:47 AM
a reply to: MOMof3
Larger corporations will, of course, do whatever they can to reduce taxes. Personally I like a flat tax system to eliminate stupid tax holes that just
complicate the whole mess. Hiring people or a person to do your taxes just adds to your operating costs.
It's not just the minimum wage that is affected by a significant increase. It creates a ripple effect that moves up the chain.
For instance, should the min wage be increased to 10/hr, how would that effect those making 8,9 or 10/hr already? Their rates would normally go up
above the new min wage... there is a reason you are paying higher than min wage for those employees. What about those who are already making 11, 12 or
13 dollars? Once the 2nd tier people get their raise to increase their wage to above minimum, then you have to bump tier 3 up to differentiate them
from tier 2....and so on and so on. How does that affect costs? If your raw materials involve labor (what doesn't?) then your suppliers will be faced
with similar increases, likely increasing the costs of their goods. If they are mfg parts for you, then likely their raw materials are also going up
for the same reason.
Bottom line is you wind up with a mix of your own increased labor costs as well as increased costs of raw materials. It becomes almost exponential....