Thank you for posting an informative post. Too often this site devolves into name calling and arguing.When workers earn less and need to support their families I have no issue paying higher taxes so they can have a wage subsidy/welfare but making the business pay the additional cost in the form of higher wages falsely inflates the value of the employees job. If you flip burgers for a living thats not really all that valuable as most people can do that. If you can build an IP network from the ground up you are more valuable as less people can do that.
Again, I disagree. I believe that the availability of earned income credits, food stamps, MedicAid, and other assistance to low wage earners is actively assisting in the transfer of wealth from the middle class to the top 5% wage earners in America.
Let's use Walmart as an example. They are one of the most egregious examples of a wildly profitable corporation, which has used your strategy of taxpayer subsidies so effectively, that wages in the entire retail sector have been affected, throughout the nation. Their HR Department actively helps its employees apply for food stamps, MedicAid, and ensures their hours are kept low enough for the employees to qualify for earned income credits.
It is said that every taxpayer in America has contributed $2,500 to pay subsidize Walmart employees wages, whether or not they ever set foot in a Walmart store. If Walmart paid each of its employees $100 a week more in wages, their employees would not qualify for this assistance, and instead, would themselves become tax payers.
Walmart would still be a very profitable corporation, just not the 8th most profitable Corporation in America. For example, there was one year where Walmart made $26 Billion, making it the 2nd most profitable corporation in America that year. Had the corporation not received taxpayer subsidies and been required to pay its employees a living wage, they would still have earned $15 billion.
I don't think that the Walton Family members really need that additional $9 billion. But I am betting that every middle-class American tax payer could use a $2,500 break. And that's just ONE big corporation. It should also be noted that Walmart is also the largest retailer in Canada, and one of the most profitable, and yet it manages to pay its employees here $11 per hour.
Because Walmart is the largest retailer in America, other large retailers were forced to adopt similar strategies in order to remain competitive with Walmart. And thus, the wages of retail workers throughout America were suppressed.
You can substitute McDonalds for the fast food industry, and tell a similar story. Now add together all of the taxes the middle class taxpayers are paying which are improving the profits of some of the largest corporations in America, and their top executives, who are all making millions, and you can see how the current tax structure is transferring wealth from the middle class to the top.
Please, make these corporations pay their own damn employees!