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A recent letter about minimum wage got it partially right (“Raising minimum wage not economically viable,” Star- Advertiser, April 11). Not taxing folks earning below $20 an hour would make life a lot better for those earners. But it wouldn’t just benefit the government.
Yes, earning more means paying more taxes, but your take-home pay will still be more than when your wage was lower. The price of goods and services will go up, but not proportionally. More people will be able to afford goods and services they previously could not — which is good for business. And it will also increase the size of the tax base.
The federal minimum wage, if raised regularly to keep pace with inflation, should be, according to some economists, anywhere between $21 and $27 an hour. The current rate set in 2009 is $7.25. No wonder life is hard. Pay people what they are worth, and everyone benefits.
Tracey Scott
Wahiawa
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