- Aug 28, 2016
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Better yet just get rid of it.Increase the minimum wage until labor no longer qualifies for it; that is a "truer minimum wage".One of the things we should do is get rid of refundable tax credits like the EITCThat is true, especially when those earning the new MW will be treated like those earning the current MW, that is will pay little to no net income taxes. The end result is more people than ever before either paying no taxes at all or getting a net payout.I'm not confused at all.You confuse tax cut economics with an outlay for fiscal multiplier purposes. Tax cuts tend to benefit the richest the mostest simply because they don't tend to spend most of their realized gains creating more demand, as Labor as the less wealthy must under our form of Capitalism.And it never does since the government always runs at a deficit.You confuse crowding with the multiplier. Any multiplier to have any effect must overcome any deficit from crowding.There is no multiplier on government welfare there never was
There is no multiplier on MW increases in salary.
If you're going to use a term at least use it correctly. In economics the concept of a multiplier is used for money deposited into banks then lent out.
The concept of an economic multiplier is only applicable to money deposited in banks and then lent out.
There is no way any extra tax revenue from a MW increase will ever lessen the deficits we run