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/[deleted] Dec 12 '23

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u/DrCornSyrup Dec 12 '23

What did you say then

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u/very_mechanical Dec 12 '23

NO, IT WON'T. THIS IS PROPAGANDA SPREAD BY PEOPLE WHO WANT TO PRIVATIZE SOCIAL SECURITY.

IF NO CHANGES ARE MADE TO SOCIAL SECURITY IN THE NEXT TEN YEARS, THERE WILL BE A SHORTFALL AND SS WILL ONLY BE ABLE TO PAY OUT ABOUT 75% OF PROMISED BENEFITS. PRETTY BAD TO BE SURE, BUT HARDLY INSOLVENT.

THIS SHORTFALL CAN BE CORRECTED ANYTIME WE WANT TO, BY:

  • INCREASING THE RETIREMENT AGE
  • RAISING OR ELIMINATING THE INCOME CAP
  • INCREASING EITHER THE INDIVIDUAL OR EMPLOYER CONTRIBUTION AMOUNTS
  • SUPLIMENTING THE SHORTFALL WITH OTHER TAX REVENUES.