Martin Macias-Rivera holds a statue as he and others protest for a higher hourly wage for fast-food workers near a McDonald’s along the Las Vegas Strip in November. (Courtesy: John Locher/AP)
(Sam Kumar, Reno Gazette-Journal) – Three weeks back, my good friend Randi Thompson wrote an opinion piece about minimum wage legislation on this page. This is a concurring opinion and I would strongly recommend that you also read Randi’s piece to fully understand the ramifications of this poorly thought out bill which is being considered by our legislature.
A good tax (assuming there is one) has two essential components. First, is the tax must be low and spread across the broadest spectrum of the population. Second, the tax must not distort the market system, which is essential to economic success. The proposed legislation, which is essentially a tax on businesses that employ low-skilled workers, violates both these fundamental principles. This tax disproportionately impacts small retail businesses like McDonald’s and the corner carwash while leaving the costs of a vast majority of other businesses untouched. It picks winners and losers, favors Vegas (where the cost of living is high) over Elko (where the cost of living is low). This is one of the reasons why even extreme liberals like Warren Buffett and Bill Gates are on the record as opposing a minimum wage increase.
Employees should be compensated based on their skills, not based on their needs — and certainly not based on a government mandate. Wages are based on a worker’s ability to generate revenues and profits. The American dream doesn’t promise any of us success, it merely offers opportunities. To take advantage of such opportunities, we need to develop skills. If one wants to make more money, there are plenty of opportunities even if they don’t have the time or desire to pursue a traditional four-year degree. Many skilled vocations like plumbing and sheet metal work typically pay over $30 an hour.
Facebook
Twitter
Pinterest
RSS