The Working Poor

If our Pols weren’t liars, this would be bipartisan.

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Let’s consider a few claims made by both parties.

They believe in Capitalism, but not Crony Capitalism.  Except they we protect firms with special rules to preclude their failure. They encourage these firms  to line their pockets (oh, wait- they call them political contributions) so they write special tax provisions to give them unfair advantages.

They know that our entitlement programs (Medicaid, AFDC [Aid for Dependent Children], SNAP [Supplemental Nutrition Assistance Program, aka Food Stamps], etc.) are out of control.  The expenditures need controlling, but certainly not the way the GOP just proposed with their Obamacare repeal (read as slash and burn the safety net).

Moreover, the GOP wants to find a way to deflate the sails of the minimum wage escalation parade.   While, the Democrats want to correct the wage inequality in the States.

Now, all of you.  Throw out your preconceived notions.  Open your thinking.  Keep your biases at bay.

OK.  In one fell swoop, I will propose a simple solution to State and Federal regulations that increase the minimum wage, slash expenditures for entitlement programs, and reduce the inequality in wages across America.

 

The fact is I have been proposing this solution for a long time.  But it has been lost in the minutiae of partisan politics.

I know you’re saying, “Enough drum rolls.  What the heck is your solution, Roy?”  ( You don’t think I know what you’re thinking?)

As I – and many others- have reported, many of our larger employers hack been saddling the Treasury with their own bills.  WalMart, McDonalds, Carl’s Jr, among many others pay their staff menial wages.  Wages so low, although at or even slightly above the minimum wage, that these employees need AFDC, Medicaid, SNAP, and a slew of other social net programs to survive.  As these same employers declare billions in profits for their ventures.

The Working Poor

Except now that I waved my magic wand, the IRS will PENALIZE all large employers (say those with at least $2.5KKin revenue and/or 23 full-time equivalent (FTE) employees.  The IRS will collect back the funds  these companies shifted from other US taxpayers to   subsidize their employees. 110% of the costs, easily identified by employee Social Security number, Federal Identification Number of the employer, and the benefits paid.

Why did I propose a penalty and not a tax?  Because penalties are not deductible.  So even the most dense of employers can recognize the need to increase their employee’s payroll, which IS a deductible expense on their income tax submissions.

In one twitch of the pen, the US Treasury will recover billions in entitlement funds (eventually, as firms provide reasonable pay to their staff, the Treasury will just spend significantly less on entitlements). Problem 1 solved.

As corporations increase their wages, the pay gap should narrow.  Problem 4 solved.  Minimum wage pressure is obviated.  So, problem 2  is also solved.

And, by doing all this, a good portion of Problem 1 is solved.  (I have another elegant solution to handle this problem completely, too.   But, let’s get this enacted first.)

Wait a minute! I don’t hear any clapping for my elegant solution.

Ah, there it is.  Thank you.  But more importantly-  please take the time to tell your Congressperson and your two Senators that it’s time to make this program a reality.  (You do know most of our elected officials REFUSE to accept communication from non-lobbyists that are not part of their district.  Even as they sit on panels and committees that affect the lives of every single citizen in the US.)

Roy A. Ackerman, Ph.D., E.A.

 

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12 thoughts on “If our Pols weren’t liars, this would be bipartisan.”

  1. I am too cynical to believe this has any chance of being enacted. Yes, it’s a solution to believe in. Meanwhile, our new Congress woman in our district literally hides from her constituency. My husband has called-the person who answers the phone says thank you- I’ll be sure she gets the message. I’m positive the messages go to the circular file.
    Alana recently posted..Willow Tree – Thursday Tree Love

    1. I swear I answered this a few days ago, Alana!
      I notice how many of these pols are hiding. and, this idea could let them be proud. Accomplishing their stated aims, helping employees, cutting entitlements…

  2. Not sure how I feel about that. I agree with your points – pocket lining, lobbyist problem, and that lower paid workers drain public assistance. I don’t agree that businesses should be penalized for making money, though. Yes, they should not be given unfair advantages (special rules for “donating” to politicians), but I’m not in favor of penalizing people who do well for themselves (like making them pay an ungodly amount of taxes). Under your proposal, what’s to prevent them from taking their business overseas, where the workers really get screwed? I’m more for empowering people to do better for themselves – like get an education so you don’t depend on public assistance or the gov’t to bail you out. But, that’s another issue – access to education isn’t equal yet either. How about if we take money out of the equation all together? Go back to a trade/barter system…..
    Allison Brown recently posted..Creativity, Part I (or, where are those damn knitting needles?)

    1. Really, Allison? So, you think its proper (I won’t even get to moral) for a company- or a boss- to pay his workers insufficient wages to live, knowing full well there are folks like you who think it’s ok to tax me and everyone else to help that employee survive? So, the company or the boss can have a profit? That’s not a profit, that’s crony capitalism, using MY money, your neighbors’ money, to line his or her pockets.
      By the way, since at least 50% (it may be 75%) of these workers are in the food industry- they can’t move elsewhere. And, if they did? Do you think that makes the situation much worse? Because if everyone located overseas, they’d have no sales here, unless folks had jobs to spend the money. But, the big issue is that they are not making profits by paying workers wages so low that we need to bail those employees out. They are sucking at the public weal. And, it’s dead wrong!

  3. I love this perspective and how simple / genius the idea comes across. I’ve often wondered why the government has to make their legislation, programs and processes so intense, convoluted and complicated when more often than not a simple solution does the trick. It’s sad that your elected officials don’t have the same level of common sense and insightful thought. Thanks for putting your views forward 🙂

    1. I love simple solutions- when they can be applied. (Of course, too many a simple solution misses the nuances. But, in this case, it’s straightforward.)
      Thanks for the visit- and the comment.
      And, yes, it’s abysmally clear that our elected officials have decided they are politicians and not statesmen.

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