Friday, March 21, 2014

For Some Workers, A Hike In The Mininum Wage Can Cost Them Thousands!

If you are a single parent with at least one child, being paid minimum wage and making less than $15,730, the government says you're in poverty.  As a result, you are eligible for all kinds of public  programs like housing assistance, food stamps, Medicaid, child care assistance, a free home phone and cellphone, Earned Income Tax Credits, and no income tax.  When the state of Pennsylvania itemized all those benefits it came to just under $55,000 in gross combined income for a single parent making up to $15,730.  $57,327 for a welfare mom/dad making $29,000:
Click to enlarge chart

Other states could be higher or lower depending on the cost of living for that given state; but, Pennsylvania approximates the average of all benefits for the contiguous 48 states.

Now, if Obama and the Democrats are successful in increasing the minimum wage by 41% to $10.10 an hour, anyone who is earning a minimum wage and in poverty will see thousands of dollars in benefits just go away.  On top of that, those losing their benefits will have to start paying taxes instead of receiving cash back from their previous Earned Income Tax Credit refunds.

Another reason why raising the minimum wage will make some Americans a lot poorer.

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