CBO: Biden $15 An Hour Minimum Wage Will Cost 1.4 Million American Jobs

[Blues Man]

You are only becoming more wealthy if your net worth increases.

Simply investing in your business and seeing no return on that investment ( higher profits) is meaningless.

Your investment should not only cover the costs of its implementation but should also bring a profit at the point where your investment has repaid its implementation and equipment costs is the place where you want to be.

If you pay for a 100000 dollar piece of equipment and all you are doing is covering the cost of paying for it then you are losing money

No. Investing in your business should increase the value of it. Take Tesla, for example. They don't show profits because they have been heavily investing, building out new factories and development. Their net worth increases dramatically.

If you install a 100000 dollar piece of equipment that you are financing and that piece of equipment does not make more than it costs to service the loan, the training of your people to use it, the cost to maintain it etc then the net worth of the business has decreased.

I made my living in commercial real estate.

If I bought a building the only way it increased my net worth is if the income derived from it was more than the costs of purchase, interest, taxes, upkeep etc. If it didn't do that I saw a decrease in net worth

 

[colfax_m]

If I bought a building the only way it increased my net worth is if the income derived from it was more than the costs of purchase, interest, taxes, upkeep etc. If it didn't do that I saw a decrease in net worth

Yes. And? You can use the invested money to increase revenue to continue investing in more property, and increasing revenue more. That’s how businesses grow.

 

[Blues Man]

If I bought a building the only way it increased my net worth is if the income derived from it was more than the costs of purchase, interest, taxes, upkeep etc. If it didn't do that I saw a decrease in net worth

Yes. And? You can use the invested money to increase revenue to continue investing in more property, and increasing revenue more. That’s how businesses grow.

the point was simply buying a new piece of equipment does not increase the net worth of the business.

Breaking even is losing money

 

[hadit]

Politics do often make strange bedfellows. For example, Liberals hate corporations, and often blame them for putting 'mom & pop shops' out of business. On the other hand however, Liberals are in favor of Government stepping in and artificially raising the cost of labor, which ravages the same 'mom & pop shops' who are less capable of absorbing this distortion in the market process.

So in reality, Liberals are in FAVOR of government stepping in to assist corporations in driving small businesses OUT of business.



Not all liberals are idiots, but... wait, yeah they are.

Mom and pop shops are not the entities that benefit from ultra low wages.

That's fast food joints and at packing plants

Funny I just looked up mississippi/mcdonald's on indeed they are starting over minimum wage




Crew
McDonald’s
196,378 reviews
Booneville, MS 38829
Job
Company
Insights
Job details
Salary
$7.50 - $9.00 an hour

Crew - Booneville, MS 38829 - Indeed.com

McDonald’s

www.indeed.com

I believe this is the true driving fear behind the mad leap to double the MW, the proponents realize the federal MW is being revealed as irrelevant because cities and states are already setting their own MW higher. In fact, they should be demonstrating against and petitioning their local governments to raise the local MW, not Washington.

The "mad leap to double the minimum wage" is because it had not been raised for around decade and inflation still happened.

Have you ever tried to cook a turkey? To do it right, you start days before Thanksgiving thawing it out, then hours before dinner you put it in the oven and it roasts gently until you pull it out, carve it and everyone enjoys. Or, you can wait until Thanksgiving morning, Plop the frozen turkey in the oven and turn it up to 600 degrees. Think you'll get a good result?

Likewise, the economy can adjust to higher costs, if it has the time to do so. Double the MW overnight and it can't. 60%+ of the workforce earns $20/hr or less and most of them would either get or demand a big raise. In your fantasy, every worker would just get a big raise and go spend it but that's not reality. Reality is, SOME workers would get a raise while MANY others would get laid off, prices would rise sharply instead of gradually and a lot of companies would just close up, putting everyone out of work. I can't believe we still have to do this education.

Besides all of that, are not cities and states setting their own MW higher than the federal?

Well there ya go. No one is proposing the MW be doubled overnight. It would be done incrementally.

Glad you're on board

Actually, the usual suspect on this board IS advocating it be done that way, and it was to him I was replying. I've had this discussion with him multiple times and he persists in thinking we could do it with no ill effects.

 

[Lesh]

Actually, the usual suspect on this board IS advocating it be done that way

Someone is advocating that the MW be doubled in one swell foop?

Who?

 

[hadit]

Actually, the usual suspect on this board IS advocating it be done that way

Someone is advocating that the MW be doubled in one swell foop?

Who?

Have you met Danielpalos? He's very entertaining and most certainly advocates that we double the MW overnight. Thinks it will cause immediate and massive new spending, huge increases in tax revenue, cats and dogs will get along, all kinds of wonderful things. Also thinks that Unemployment Compensation applies to those who never held a job and never will, and the only reason he can't quit a job and collect is unequal protection under the law.

 

[Toddsterpatriot]

You guys understand how marginal tax rates work,

At what level of profit does the 95% rate kick in?

There is no 95% tax rate, this is all hypothetical.

Yup, and I understand how they work. Do you understand how incentives work?

 

[Lesh]

Have you met Danielpalos? He's very entertaining and most certainly advocates that we double the MW overnight

I generally read his posts pretty closely. I don't recall seeing that. Could you quote it?

If he has advocated that he's wrong.

 

[colfax_m]

Yup, and I understand how they work. Do you understand how incentives work?

Sure.

 

[Toddsterpatriot]

Yup, and I understand how they work. Do you understand how incentives work?

Sure.

What is your incentive to start a new business if the profit is taxed at 95%?

 

[Lesh]

I made my living in commercial real estate.

That's not exactly a badge of honor. Was that after you graduated from selling used cars?

 

[Lesh]

What is your incentive to start a new business if the profit is taxed at 95%?

Has a BUSINESS ever paid an effective tax rate of 95%?

No?

 

[colfax_m]

What is your incentive to start a new business if the profit is taxed at 95%?

Because the business becomes valuable.

 

[Toddsterpatriot]

What is your incentive to start a new business if the profit is taxed at 95%?

Has a BUSINESS ever paid an effective tax rate of 95%?

No?

Why do you think using the word "effective" when discussing a corporate tax rate of 95%
changes anything when discussing the incentive to open a new business?

 

[Toddsterpatriot]

What is your incentive to start a new business if the profit is taxed at 95%?

Because the business becomes valuable.

A business is only valuable if you can take earnings out of it.
If your earnings are taxed at 95%, your business isn't very valuable.

 

[hadit]

Have you met Danielpalos? He's very entertaining and most certainly advocates that we double the MW overnight

I generally read his posts pretty closely. I don't recall seeing that. Could you quote it?

If he has advocated that he's wrong.

I wish I could pull a single quote where he said that, but we have an entire thread based on his premise that Unemployment Compensation covers even those who never held a job, and he was adamant throughout that one about doing it. He's also indicated that raising the MW to $100/hr would work too. Nowhere have I seen him indicate that raising the MW should be done incrementally. That's always been my position and he's always argued against it. Arguing with him is exhausting and it's very easy to run out of give a crap.

 

[hadit]

What is your incentive to start a new business if the profit is taxed at 95%?

Has a BUSINESS ever paid an effective tax rate of 95%?

No?

Individuals didn't pay 95% either. One of the things routinely ignored by those carping about Reagan's tax cuts is the fact that he did away with a lot of loopholes too.

 

[Lesh]

Individuals didn't pay 95% either.

Then tell Todd to STFU

 

[DBA]

In the long run, higher paid labor creates more in demand and generates more in tax revenue.

Say what? Please explain how higher paid labor creates more demand.

Are you on the right wing? If the minimum wage doubles (in this case), those persons will be able to afford to eat at that establishment twice a week not just once a week.

Except that if wages are doubled, the price of the food will rise accordingly so they will still only be able to afford one meal. This isn’t complicated.

 

[Lesh]

Have you met Danielpalos? He's very entertaining and most certainly advocates that we double the MW overnight

I generally read his posts pretty closely. I don't recall seeing that. Could you quote it?

If he has advocated that he's wrong.

I wish I could pull a single quote where he said that, but we have an entire thread based on his premise that Unemployment Compensation covers even those who never held a job, and he was adamant throughout that one about doing it. He's also indicated that raising the MW to $100/hr would work too. Nowhere have I seen him indicate that raising the MW should be done incrementally. That's always been my position and he's always argued against it. Arguing with him is exhausting and it's very easy to run out of give a crap.

OK. You made some specific accusations. I can't vouch for their accuracy and you can't substantiate them. I think we need to hear from him then.