Thursday, August 28, 2008

National Sales Tax - Minimum Wage


It is not new to know that I support a National Sales Tax. And it certainly should not be new to know that I support the elimination of minimum wage. There are so many benefits to doing both that I will only hit on the high points before I get to the new angle I thought of yesterday.

A National Sales Tax is the fairest tax there can be, it taxes everyone, including illegal immigrants. And if you really like to stick it to the rich, the more you spend the more taxes you pay. There are no filings, no bloated IRS, no returns or penalties, no intrusion into your life, and no need for cumbersome payroll filings that will be important for my later point.

If you have ever read my blog, you will know the countless reasons for eliminating minimum wage. It will increase employment by decreasing the incentive for illegal immigrations, it will decrease inflation (is it any wonder that once minimum wage went up so did inflation), and it will allow companies to pay people any amount of money to do any task for which the market will demand.

Getting rid of payroll taxes and the paperwork needed to hire a new person along with allowing the market to dictate a wage is the crux of my point. I had my Newton apple on the head moment when I was driving home from work. I saw two people in a succession that made me think of this. First, I saw a homeless guy holding a sign asking for money. Then, I saw a guy standing outside of Little Caesar's holding a sign for their Hot 'N Ready Pizzas, something they do every evening. I thought how silly it is to have to pay this guy full wages to stand outside and hold a sign when he could be inside helping to make the pizzas. Then I thought (and I'm not trying to be crass), why not walk down and ask the homeless guy that is begging for money to hold your Little Caesar's sign in the evening for an hourly wage to be negotiated. He might even be able to still hold his sign asking for money at the same time. It's a win win. And if you can do that for holding a sign, that same principle could be applied, legally, to any number of situations. Any business could hire any person to meet any short term need without worrying about documentation and reporting earnings.

You see Little Caesar's can't take the time to fill out the paper work, get legal approval, cut payroll checks, withhold FICA and all the other taxes, and then pay the large amount of 6.75 just to hold a sign, so they don't. The result is a lose lose scenario.

3 comments:

Kansas Bob said...

I am okay with both positions Scott.. as long as we take care of the poor.

TheJotus said...

Yes Scott, make sure we take care of the poor. Wait...didn't you do that by giving a specific example of how one poor guy (guy begging for money)could increase his economic status with a job?

jrchaard said...

Not only will the poor have more opportunities at legitmate work, everytime we cut the government, there is one less barrier between us and God. People would rather give to the poor than have their money taken, pay the salary of 4 people to give one person 20 cents on the dollar of benefit. God loves a cheerful giver. Government makes people lazy in their giving.