3 ms·
My first thought was that since the welfare benefits to the employee are tax free this becomes a (marginally) more effective way to “pay” your low-wage employee
by zaroth 8y ago
My first thought was that since the welfare benefits to the employee are tax free this becomes a (marginally) more effective way to “pay” your low-wage employees.
But the marginal tax rate at that part of the curve, taking into account the EITC is close enough to zero that it’s not an issue.
I like the plan, I think that it needs a slight tweak. The fine should be 200% of the subsidy, and perhaps it should only apply to workers working at least 20 hours a week.
- mabramo 8y agoDo you mean workers working 20 hours a weeks total or 20 hours a week at a particular employer? There are plenty of individuals who work multiple jobs, still get only 30-some hours, and still collect public assistance. Seems like a needless clause.
- zaroth 8y agoWho pays the fine if you work 3 jobs 15 hours a week each? If they are all large employers — all 3 of them? Remember this doesn’t change anything about what the employee is paid, it’s a fine for paying an employee too little to be self sufficient. I’m not sure that makes sense if someone is only working for you one day a week, for example.