It’s time to review the facts again.  Because it’s reporting season- when companies let us know how profitable they’ve been- and how much we should reward the CEO’s who (they want us to believe) are solely responsible for this situation.   Yet, these same CEO’s seem to get rewards even if the results are poor. So, before I switch gears, let me just say I look forward to the promised regulations that will require companies to publish performance gains AND CEO pay increases side by side.

But, the real issue is when companies make profits by NOT paying their employees fair wages.  No, I am not advocating for a change in the minimum wage, though.  In spite of the act that folks like the New York Times editors, the Reverend Al Sharpton, even Senator Tom Harkin propose- the concept is ill conceived.

You see, there are a slew of small businesses- especially businesses just starting out- that can’t afford to pay more wages- yet.  Until they get big enough.  We want them to grow their businesses so they can employ more folks.  And, as they grow, they will employ more folks and pay reasonable wages.

Because, instead of raising the minimum wage, it would be way more useful to insure that corporate profits are not being obtained at the expense of American citizens.  You see, folks like Boeing are paying their South Carolinian employees so little, that a majority of those employees are on the dole.  Yes, these laborers are getting food stamps, housing assistance, all sorts of government handouts.

So, while Boeing is claiming how profitable their venture is, they are primarily profitable by thieving money from you and me.  Because we citizens are forced to subsidize it and firms such as these by aiding their employees- who are not being adequately paid.

It’s time we penalize (that means, not a tax, but a penalty; taxes are deductible expenses, penalties are not a deductible expense that lowers the profits of a firm) the exact dollar amount we are paying to subsidize their employees.  There is no reason that stockholders can obtain dividends using our tax dollars.  Or that CEO pay can grow because we are forced to ante up the funds they are not spending on wages for their employees.

The issue is where one imposes this penalty.  (Remember what I said yesterday- one company’s needs are another’s tax loophole to be filled.)  And, I’ve refined my thinking on this matter.  (Sorry, Charlie, the only people who never change their mind are those too stupid to have properly made a decision in the first place.)   I now am certain that the $ 2.5 million in gross revenue is one marker, but instead of the number of employees, the other marker should be total payroll- $ 750,000 (including executive pay)– is the other.  When a company crosses either threshold- ONCE- the penalty begins applying.

Once we start collecting those funds from these firms- on a non-deductible basis, you know they will begin to pay the proper wages.  Because wages are a cost of doing business- and are deductible to them. (Remember, these firms can avoid the penalty by not having their employees receive public assistance.   And, the amount of public assistance should not be $ 1 or $ 100, but at least $ 50,000 in the aggregate for a given year.)

Once we impose these rules,  will be cheaper for a company to properly pay their staff [remember- wages are deductible and lower one’s taxable income; penalties are not, so they are paid out of corporate coffers without lowering one’s taxable income] instead of ripping off the US citizen and not pay decent living wages.

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