So gun, tell me what you think. I don’t have any specific numbers here, but Bernie and Warren want to make a mandatory minimum wage of $15 an hour. People hear this and think they will be doing great. But, they and their employers would be paying more payroll tax even if the percentage stays the same. They would most likely be in a higher income tax bracket. And to pay for their healthcare one of those taxes will be greatly increased (I think it would be the payroll tax).
Also, they would lose eligibility for all or part of food, housing and daycare benefits they get now.
And, of course, employers will cut hours, employees, or go out of business. No more value meals at McDonald’s either.
Well, raising the wages to $15, may or may not move a person up to the next tax bracket. The current brackets are pretty wide, so that alone may not move them up a bracket. However, I wouldn’t expect the current tax code to go untouched with either Bernie or Warren.
Yes, the increased wages would probably cause them to lose any benefits they are currently receiving. Again, the amounts & qualifications would probably change under a different administration.
But to your last point - they probably would be right back on the dole, as yes, they would probably end up out of a job as employers would cut way back. Their whole scheme is unsustainable.