On Rush Limbaugh’s program today, he said that a minimum wage job had more disposable income than a person making $60K a year. We all knew there was an economic disincentive to work because of all the federal benefits that are forfeited as you make money.
But I was shocked to know that a minimum wage earner can get more in benefits and tax breaks than a 60K a year worker!
I did not produce the table on this page myself. It came from Tyler Durden of ZeroHedge.com. Please note that this study assumes a head of household with one worker plus family (thereby the earned income tax credit is applied to the minimum wage worker).
A minimum wage worker only pays 8.4% of his or her income in payroll and federal income taxes. While the $60K a year worker pays 21.7%.
But it is true. All of these benefits programs have income requirements, i.e. you must make less than a certain amount. And because minimum wage workers are able to apply for all of the assistance and the 60K a year worker is not, they end up with more disposable income.
A $60K a year job is the equivalent of $30/hr. That is a lot of money for most people.
I went to Monster.com’s salary wizard to see how much different occupations earned in Cleveland, OH. I just picked a random city.
|Job Title||Avg Salary|
|Mechanic Technician I||$38,069|
|Retail Sales Manager||$34,492|
|Construction Coordinator I||$50,909|
It looks like the economic benefit of a minimum wage job is better than most jobs sans lawyers and nurses and doctors. This is ridiculous.
The next time Liberals tell you they need to help the poor, just explain to them we are already helping the poor so much that they are getting more in disposable income than $60K a year workers. If anything, we need to reduce the benefits people get.
The rules in order to apply for food stamps, for example, require that you do not have any assets. We should be encouraging people to save money, not lose it all in order to apply for benefits. And having a 401K of any amount generally amounts to being excluded from some benefits.
That makes it more profitable to work under the table.
I wrote another article about this back in September of how the poor were able to get so much in benefits for not working. And that all the government benefits they get is a disincentive to work. We should not subsidize staying at home (minimum wage).