A Compromise for Taxes, The Minimum Wage, Growth of the Middle Class and a Stimulated Economy

The Current Tax System (as-is)

Currently taxes are levied against businesses to the benefit of the US Governments budget to be allocated (poorly) to crony contractors and for direct government employee benefit.

Why This Is Important

This is important because of differing views and admission of a common problem. The minimum wage is much lower than it has been in many years, arguments for raising the minimum wage are easily shot down by businesses replacing their workers with cheaper automation. Growth of the middle class is at least partially dependent on wages paid to employees, and in turn growth of the economy is dependent upon a vibrant middle class participating in the capitalist system. The latter two things cannot be achieved if there is no incentive to retain employees at a higher wage. This compromise hopes to address the concerns of interested parties.

The New System (to-be)

Removing a percentage of taxes levied on businesses on a per-industry basis for re-allocation is used to great benefit. It is important to note that this does NOT involve a change in the amount paid in taxes, merely whom they are paid to. The principal behind this is based on the federal government s willingness to incur lost tax dollars (a smaller government is a result) in order to grow the middle class, raise the minimum wage, and stimulate the economy. It is not merely trolling liberals into accepting a smaller federal government, but merely the realization that they cant have both a vibrant middle class and a massively overfunded, bloated federal government, doing so would indeed raise taxes and cause businesses to leave for low tax zonesor keep wages lower than livable.

Implementation
A function based indirectly on a businesss profit, through values that come from the current tax system, must be used to determine a FAIR minimum wage for its employees. This means that a one-size-fits-all minimum (starting) wage as the current system uses would be largely irrelevant, except in cases where businesses are not profitable, or profit margins are extremely low. This flexibility will keep small businesses competitive.

Commented [Ma1]: It seems a crime that presidential candidates, hoping to be executive of the largest business on the planet, do not give presentations to the American people instead of hackneyed debates, for their proposals to change it.

You may be wondering about employees being hired while a business is not very profitable having lower starting wages than another employee who joined when the business was more profitable (assuming the business doesnt drop every employees wage when they are less profitable). This can be addressed by recalculating the minimum wage every tax season (or quarter if necessary). Becoming a member (employee) of a business that becomes very profitable would cause your wages to increase along with the business, and along with the taxes levied. Dropping wages resulting from a business becoming less profitable is sure to draw dirty looks from labor unions, and would surely cause businesses to be more conservative with issuing raises in pay. Stagnating wages around a minimum (albeit, a now acceptable minimum) is already a problem and a livable minimum should provide opportunity for a worker to take their experience and skills elsewhere if they feel their skills are undervalued or that another business offers better opportunities for advancement.

Problems Predicted in The New System

As the amount of hired employees at a business changes, so too must the business s adjusted minimum wage. Employees near the minimum certainly would not desire changes to their pay occurring frequently, but it may be tolerable at yearly or quarterly intervals considering the benefits enjoyed by the new system. If the industry-standard percentage of federal taxes cannot be distributed among the employees without a hyper-inflated minimum wage, there may be a push to either have the business disregard those taxes (bad!) or give the rest to the federal government in the form of taxes (bad!). This may mean extremely profitable businesses with a low number of workers would be paying their workers ridiculous amounts. Good or bad? There is certainly incentive to be a part of such a business, and also temptation for federal government regulators to make industry standard exemptions for these particular businesses, or legislate to the effect of creating more of these low-employment money train businesses to benefit the federal government cronies (bad!).