In this post at RealClearPolicy, Robert VerBruggen makes an observation that hadn’t occurred to me. The major, presumably unforeseen effect of increasing the minimum wage from $7.25 an hour to $10.10 an hour (a figure frequently encountered) would be to increase the marginal federal tax rate on the lowest income earners:
The point of this post isn’t to argue one way or another about whether the federal minimum wage should be raised or not. There are solid arguments both ways. I don’t think there’s a solid argument that our tax system should be as regressive as it is and as this graph above depicts so powerfully.
Major tax reform, like healthcare reform, typically occurs about once a generation in this country. We’re due.