Wednesday, June 13, 2012

Should the Federal Government raise the Minimum Wage?

National Action Alert

Increase Minimum Wage

to $10 Per Hour

We received the following e-mail today: from National Write Your Congressman.

Mr Robin B Tucker,

Jesse Jackson Jr. (D-IL) introduced legislation "The Catching Up To 1968 Act of 2012" that will raise the minimum wage to $10 an hour and index it to inflation. "That may sound like a hefty wage increase but it doesn't fully equal the purchasing power of the minimum wage in 1968 - which today would be closer to $11 per hour, stated Rep. Jackson. "The bill is really only allowing American workers a degree of 'catch-up.' Thus the name and theme around the bill: 'Catching Up To 1968.' Of course, the current federal minimum wage has been $7.25 per hour since 2007."

The Catching Up To 1968 Act of 2012 contains four basic elements:

It raises the minimum wage to $10 per hour

The minimum wage is raised immediately - not gradually as in the past - beginning 60 days after the date of enactment

Beginning one year after the $10 per hour minimum wage takes effect, and each year thereafter, the minimum wage will be indexed in proportion to the increase in the Consumer Price Index (CPI)

For workers earning their living on the basis of tips, the cash wage paid to such an employee is to be 70% of the minimum wage when the law takes effect, but in no case less than $5.50 an hour, adjusted annually as necessary thereafter

While running for office, President Barack Obama promised to raise the minimum wage to $9.50 an hour by 2011. Both the president and his 2012 campaign opponent Republican Mitt Romney have supported the idea of adjusting the minimum wage to keep up with inflation.

Opponents argue that increases in the minimum wage fall disproportionately on small businesses who are the least able to absorb such a dramatic increase in their labor costs, and that supporters aren’t factoring in the cost to the employer who’s paying it. The Nation is currently in difficult economic times, and the focus needs to be getting unemployment down. The increase would force employers to cut other payroll costs, such as limiting overtime or laying off part-time help, squeezing employers who already are under pressure.

Do you think the minimum wage should be increased to $10 an hour and indexed to inflation? (Click Here)

Take action and voice your opinion now!

Do you think the minimum wage should be increased to $10 an hour and indexed to inflation? (Click Here)

Personally, we view the Federal Minimum Wage should be eliminated, on the basis it is matter for the States.  The late Tip O'Neill said the following phrase "All politics is local" and when it comes to the minimum wage... we believe this matter should be left up to the States and local markets.  The minimum wage in Iowa certainly has no relationship with the economies of urban Chicago, Los Angeles or New York.
The increase will cost $5,725.00 over the first year of implementation for any employee currently on the Federal minimum wage at $7.25.  What impact will that have on first-time employees and people with disabilities, who are limited to how many hours they can work? 
Why isn' the alternative minimum tax adjusted annually for inflation? 
Look at unemployment numbers today?  Is this a good idea for America and getting people stable and confident in America's economic future?

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