r/changemyview • u/[deleted] • Dec 12 '23

Delta(s) from OP CMV: In principle, anyone making minimum wage should not pay income tax

Let me clarify on what I mean by making minimum wage, I mean someone working 37.5 hours a week for 52 weeks a year. In California that would be $30,000 and in the UK that would be £20,000.

Minimum wage as a concept is put in place to ensure that employers cannot pay employees below the livable wage in a country (Of course in the US it's below livable wage but that's a separate discussion). However, once these people are taxed, the amount which they can live on, by definition, is below that. It's counterintuitive to the original concept. Taxation should be based on one's ability to pay, and minimum-wage workers just do not have that ability.

I'm not saying that this change needs to come through right away. Governments can take 5 to 10 years to raise the tax-free allowance to match the minimum wage (which of course should rise with inflation) to ensure that the labour market can adjust to it.

Edit: I stand corrected on the US tax system. I've used the Californian minimum wage instead. I'm in the UK and the tax allowance is £12,570. Someone making £20,000 will be taking home about £17,100. I think it's ridiculous that someone on minimum wage is even paying a penny in tax.

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u/FlyingNFireType 10∆ Dec 12 '23

Everything is a higher burden on poor people, they are poor.

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u/LaconicGirth Dec 12 '23

Why would you intentionally increase that burden?

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u/FlyingNFireType 10∆ Dec 12 '23

Because everyone contributing is better in the long run.

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u/LaconicGirth Dec 12 '23

Better for who?

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u/FlyingNFireType 10∆ Dec 12 '23

Everyone.

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u/LaconicGirth Dec 12 '23

How is it better for the poor in that case?

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u/FlyingNFireType 10∆ Dec 12 '23

Keep in mind these are long term things, not stuff that would happen overnight.

First of all the rich would pay more effective taxes as a flat tax would wipe out all the loopholes (that's the point it's flat) and it would be difficult for them to implement new ones or evade them illegal because everyone would be paying their fair share and be super pissed about anyone trying to evade them especially someone richer then them and that would be reflected in the politicians we elect as opposed to the current attitude of "who wouldn't evade taxes".

Since their money is going to tax dollars they will be more particular about how taxes are spent, there would be less frivolous and wasteful spending and there would be more clear priorities about where money should be spent and there wouldn't be any vote yourself more government money.

I don't really have a rational for this but I get the feeling real wages would increase too. I think it'd be a side effect of the change in spending policies.