There’s a movement afoot by the Democrats to get the minimum wage raised again. Despite historical financial evidence to the contrary, raising the minimum wage does not help those at the low end of the wage spectrum, as our nation’s leftists would like us to think. Raising the minimum wage means businesses are less likely to hire more workers, due to their increased costs with the raise in the minimum wage.
Contrast this with the fact that, according to today’s Political Diary, Germany is set to cut its corporate tax rate to thirty percent, down from thirty-nine percent. Once it does so, the United States will have the highest corporate tax rate of the industrialized world.
How does this affect the minimum wage? I’m glad you asked. It seems high corporate tax rates, according to a “new study by American Enterprise Institute scholars Kevin Hassett and Aparna Mathur…is for the most part paid by workers in the form of lower wages.”
Ergo: cut the corporate tax rate, workers’ wages will rise.
You can not get even odds in Vegas that the Democrats would sign on to such a policy.posted on July 18, 2006 1:00 PM