[USFRIENDINVICTORIA]

I believe that dangus is referring to the very high marginal "tax rate" low wage workers face, as their wages increase -- or turning that around, the very high rate of increase of subsidy, as wages go down. The following chart shows what I mean:

IOW, when the minimum wage goes up, most of it is "taxed" away (mainly by reduced subsidies). dangus has an interesting take on things -- but, essentially, he's right.

More here:

http://www.heritage.org/research/reports/2013/01/effective-marginal-tax-rates-for-low-income-workers-are-high

[dinodino]

The bigger concern is the competitive effects of raising the minimum wage. If anything, it should be removed entirely.

[dangus]

And that’s just based on income tax. Add in all the benefits they could lose, and they’re looking at $45,000 before they’re profiting. In Pennsylvania, it could be $65,000!

Meanwhile, with 23 million Americans out of work, McDonald’s is still insisting on importing illegal aliens.