Re:What harm do minimum wages do?
by dragonwriter on Wednesday August 19, 2020 @09:03PM
(#24218784)
> I’m not all that educated on negative tax rate
Negative income tax is not a negative tax rate (it's a credit plus a progressive, always positive, rate.)
(EITC has a negative rate in the lower portion of it's range, but EITC is a weird thing.)
> what’s to prevent companies from just setting wages to obscenely low, knowing the government will just pick up the bill and pay out the difference?
People's lack of willingness to work for low wages, which increases when there is reduced economic coercion to take whatever minimal scraps are thrown at you because of the income floor provided by UBI or negative income tax (different names for the same thing.)
Negative income tax is not a negative tax rate (it's a credit plus a progressive, always positive, rate.)
(EITC has a negative rate in the lower portion of it's range, but EITC is a weird thing.)
> what’s to prevent companies from just setting wages to obscenely low, knowing the government will just pick up the bill and pay out the difference?
People's lack of willingness to work for low wages, which increases when there is reduced economic coercion to take whatever minimal scraps are thrown at you because of the income floor provided by UBI or negative income tax (different names for the same thing.)