Top Pro & Con Arguments

Con

Raising the minimum wage would decrease employee benefits and increase tax payments.

According to James Sherk, MA, Senior Policy Analyst at the Heritage Foundation, a single mother working full time and earning the federal minimum wage of $7.25 an hour would be over $260 a month worse off if the minimum wage were raised to $10.10: “While her market income rises by $494, she loses $71 in EITC [earned income tax credit] refunds, pays $37 more in payroll taxes and $45 more in state income taxes. She also loses $88 in food stamp benefits and $528 in child-care subsidies.” [77] A 2014 study of 400 US Chief Financial Officers (CFOs) by Campbell Harvey, PhD, J. Paul Sticht Professor of International Business at Duke University, found that 40% of CFOs would reduce employee benefits if the minimum wage were raised to $10 an hour. [78] Some staff at the Seattle-area nonprofit organization, Full Life Care, asked for a reduction in hours after the minimum wage was raised, citing concerns that the increase will mean they lose their housing subsidies yet they are still unable to afford market-rate rents. [79]

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