To $9.25 an hour. FYI, I've worked years ago 3rd shift jobs that obviously for a reason pay more per hour then day time that pay min $9.25 an hour.
For the conservative idiots that think this will hurt businesses it won't. Why? Employee payroll is 100% tax deductible off of corporate profit. They get this money back by having to pay less in taxes. Plus, with all the companies dropping medical coverage which is going to save the big corps millions and the small corps thousands, they have extra money and as a business owner they should put it towards their employees for business productivity and employee morale reasons.
Walmart starting in 2015 is raising their min wage FINALLY. FYI, if you are an small business owner and can only pay 7.25 an hour then what the hell are you doing in business? You shouldn't be.
For the conservative idiots that think this will hurt businesses it won't. Why? Employee payroll is 100% tax deductible off of corporate profit. They get this money back by having to pay less in taxes.
Ummm.....payroll is deductible from earnings, not from profit.
If your income before taxes is $100 and your tax rate is 30%, your taxes are $30 and your profit is $70.
If your payroll increases by $10, your income before taxes is $90, your taxes are $27 and your profit is $63.
Nice job trying to nit pick and I'm correct that tax liability on gross earnings will decrease putting more money in the business account rather than the US Treasury's. Point still stands we can most certainly increase the min wage and my figure is fair.
btw.. Net earnings is called after tax income or true profit. Gross is what the tax is based on after the allowable deductions.
So -
Example 1 - 10 million gross sales - 5 million in deductions including payroll = 5 million in adjusted gross income.
Example 2 - 10 million is gross sales - 5.5 million in deductions (.5 increase due to payroll payout increase) = 4.5 million in adjusted gross income.
The lower the adjusted gross income the less tax you pay. It mostly evens out and certainly companies can pay a little extra if there is any increase, which should be minimal
Nit pick? LOL!
Employee payroll is 100% tax deductible off of corporate profit.
That's not a nit, that's a huge misunderstanding of how things work.
The lower the adjusted gross income the less tax you pay.
Absolutely. If your income before taxes was $1 million and you increase your payroll expenses by $1 million, you will pay no taxes.
It mostly evens out
If your tax rate is 30%, you'd end up reducing your profit by 70% of the increased employee payroll costs.
Just as I showed in my example. Profit was reduced by 10%. It didn't "mostly even out".
What you are doing is intentionally calling tax deduction a tax increase. Do you know what deduction means? Deductions are meant to lower your tax burden. That means your tax can only go down. Not up. The only thing you were correct about was that and I'll quote you, ".payroll is
deductible from earnings." I highlight the key word. We BOTH agree that it is a tax
"decrease. "
Now it's not as big as it would be if it was off of adjusted gross income or profit, but regardless it goes DOWN. Now you and I know darn well that all major corporations can without question afford an increase to $9.25 an hour. What's funny is I didn't even mention other savings companies are getting right now,
Full time to part time,
No longer providing employee healthcare coverage due to full time to part time and Obamacare. HUGE SAVINGS!
and lack of hiring meaning hoarding of corporate profits.
Hiring of 1099 independent contractors which work for less but get more work and more pay because they can do work for multiple companies at a time.
For corporations there are 3 MAJOR deductions for taxes - Payroll, Inventory, Insurance for employees, where companies pay for the majority of it. Like a match. That tax RATE you keep talking about will decrease due increase in payroll DEDUCTION amount, which lowers your gross income liability. .
Putting this in simple term for the retarded - Tax rate doesn't matter at all. You can be taxed at the same rate of 30% and pay less taxes if your gross income that you are liable to pay taxes on is
decreased more, which you already agreed it does. This doesn't mean a loss of profit in fact it could very well increase corporate profits in 2 ways - 1.) By reducing taxes owed you save money. 2.) By paying employees well it can affect their performance on the job and be a direct result of more sales and more regular customers meaning higher corporate profits, which means your taxes could actually increase, but not as a result of higher employee pay, but more sales and business, which is what corporations want, and they'll need that higher payroll deduction.
I know what you are trying to do and it won't work. Like I said, "my point still stands." Major fail dude.
