The Liberal legislators have come up with yet another way to hit you, Mr. and Mrs. Taxpayer, right smack dab in the middle of your pocketbook. And of course our spendy local legislative twins - DFL Senator Olseen and DFL Representative Kalin - who always put people above politics - are right in there with all the other far-out Liberals supporting this added tax burden.
But their added tax burden has such a nice sounding ring to it how can anyone be opposed to it! What is their added tax called? It is called an INCREASE IN THE MINIMUM WAGE. Well now how can an increase in the minimum wage be an added tax? If I make more per hour how can that be other than a real good thing?
Here is an illustration and an answer. Wages are not based on an employer's charity but upon a worker's productivity of a saleable product. A sale occurs only when a willing seller meets a willing buyer. That is the classic definition of a sale. Sales and purchases are not a function of charity but rather of the exchange of goods and labor. If I try to charge you too much you don't buy and I don't make a sale!
Examples abound all over the place. But let's just use this one. For instance, if I want my lawn mowed but your minimum wage is fifty bucks an hour, I look into my available money and I find that I can't afford that. So I turn the sheep loose on the lawn and they eat it clean. Or I let the grass grow! In this case you didn't get your wages and I didn't get your service. So, in a sense, we both lose.
The reason government (that's Olseen and Kalin in our illustration) can be generous is that government (that's Olseen and Kalin again) doesn't have to be concerned with cost because they (government) don't pay the added cost, employers have to raise the prices you and other people pay while Olseen and Kalin turn around and say to you "look how good and charitable we are!"
Obviously, the "minimum wage scheme" is just a scheme! If they can mandate, say ten dollars per hour increase for you, then why in the world in the name of charity don't Olseen and Kalin mandate that the minimum wage be twenty or even thirty dollars an hour for you. If ten is good then twenty is better and thirty is best!
If somebody has to pay the worker more per hour that somebody will have to charge the customer that much more per hour because wages are never a function of charity but are an integral part of the cost of production and that additional cost always gets added on to a selling price and that is where the minimum wage scheme falls apart as a scheme and, in effect, your taxes get raised. It may be disappointing to have this pointed out and to have to acknowledge it but it is a fact. It is nothing but a scheme.