Higher Pay: Making Hard Work Pay Off
why do i never get ahead? You're not a lone, many americans have seen their wages STAGNATE. Here's why:
· An average citizen in the Top 1% earns 98 times that of the average citizen in the bottom 50%
· Income spent by bottom 50% has 5 times the economic impact of same amount given to the top 1%
· Income for the average American has been stagnating for the past 30 Years
· Strong Unions boost pay for every worker (event those in non-union shops)
· Improving income equality means economic growth, more jobs, and higher wages
Why should I care?
Two numbers- 32 cents and $1.61.
$1.61 is economic the impact of $1 spent by the average working American.
32 cents is the economic impact of the same amount given to the top 1%.
Focusing on working Americans rather than the top 1% grows our economy at 5 times the rate. When you earn more you spend more. Job creators hire more workers when people have money to buy what they sell. Job Creators don’t hire workers because they get a tax break. When we provide tax breaks to the top 1%, they no longer need to compete to provide you with the goods and services that you need. We need policies that put more money in the pockets of the average American.
What does this mean for you?
It means economic growth.
It means more jobs.
It means higher wages.
Let’s Do This!
Here are three ways we can increase wages.
1) $2,500 per year payroll tax reduction for working Americans.
This will help every working American who earns less than $150,000, not just the ones that pay income tax. We reduce Social Security Tax paid by workers from 6.2 to 3.2 percent. This is more money in your paycheck- $2,500 a year for the average household. The extra income means more economic growth. It means more jobs. It means higher wages.
How we pay for this:
If we are going to do this, we must pay for it. No, it won’t pay for itself, a claim that is often made but seldom true. We pay for this by taking away a simple loophole given to those making more than $127,200. This loophole exempts them from paying any additional Social Security Tax on their income. If you make less than $127,200, you pay 6.2% on all your income; your employer pays another 6.2% for you. We should not be giving a loophole simply because someone makes more money. The wealthy often make more money because they no longer need to provide good pensions to their employees because of Socials Security. If wealthy benefit from not giving you a pension, they should not have this loophole and they should contribute a fair share for Social Security.
2) Make Social Security solvent and INCREASE benefits.
Social Security is a lifeline for many. They have spent their life paying into Social Security but no longer have enough to make ends meet. It is time we create a minimum benefit of $17,000 subject to a means test for anyone who has paid in for the required amount of time. The means test would phase out just the additional Social Security benefit on incomes between $30,000 and $35,000 for an individual and $45,000 and $50,000 for a married couple. Providing extra income for our seniors means economic Growth. It means more jobs. It means higher wages.
How we pay for this:
We can pay for this measure by the elimination of another loophole. Capital Gains is a tax primary paid by wealthy Americans. This tax is much lower than the income tax rates and is one reason why the top 1% often pay a smaller percentage of their income in taxes than the average American. To pay and fully fund social security, we should no longer exempt Capital Gains from the Socials Security Tax for taxpayers making more than $150,000. Taking away this loophole means that owners of corporations, who have continued to cut pensions and reduce the amounts spend on their employees, will now have to share in the expense of retirement.
3) Double the Minimum Wage.
The minimum wage is too low. When the minimum wage is too low working households can be caught in a cycle of debt and poverty that prevents them from moving up. Raising these wages is a way to give someone a hand up and benefits us all. When households have more income, they have the ability shop at locally owned business and eat at restaurants that are not named McDonald's. They are healthier and are fewer tax dollars spent on health care. The extra money they earn is spent locally increasing everyone's wages. Higher minimum wage means economic growth. It means more jobs. It means higher wages for all.