2010-08-24

Taxes and Why I Know Republicans Are Better For Helping the Poor

I was just thinking about this story today and thought I should share it on my blog here.

When I was 16, I was hired at Pizza Hut for $3.85/hour. I was actually hired on my 16th birthday. Bush Sr was president. I probably worked anywhere from 11 to 16 hours a week. I remember I was very excited about getting my refund check. I didn't pay any taxes because, it was all returned to me, in full. Awesome.

So, then Clinton was elected. I didn't like Clinton. I guess you could say I was more liberal at the time but, I never liked Clinton. I did like minimum wage hiking up to $4.25 though. That year I worked about the same amount of hours. My checks were slightly bigger but, they sure took out a lot of money. My refund check was a joke. I barely got anything back.

I had worked out some comparisons from the previous year with a friend and, with all I had earned, including the refund check, I made more money the previous year. I couldn't believe it. My friend had estimated that he made a little more because he worked a few more hours but, overall, the take home pay from the previous year was more, not less, even though the minimum wage had increased.

So, what was going on here? Well, because, I wasn't married and didn't have any tax breaks, I was paying more, much more, in taxes. Clinton did NO favors for the poor by raising minimum wage.

The problem with Democrats is they raise the taxes on everyone. This is always their solution. They want to spend more and they want to tax more.

Democrats also love to raise the minimum wage but, many times when they do, they prevent businesses from hiring more people.

The current minimum wage is $7.25. This became in effect in July of 2009. The problem is, there are many jobs that just aren't worth paying that much, plus benefits. Many times, people just need someone to do some light cleaning or, maybe some filing. These are simple jobs that can be done for the purposes of allowing other employees to do more in their positions, without being bothered doing other tasks that eat away their time. When you raise minimum wage, these jobs are the first ones cut from the economy.

A lot of people that are out of work may not necessarily be looking for high paying jobs. They are people looking for those simple jobs that are cut. People who are college students who need an easy job, moms that mostly stay at home but are looking for a part time job to bring in some extra cash, high school students looking to have some experience in an office setting, ect. These folks do not need $7.25 an hour. They just need a little extra cash to do some simple things.

Another effect that occurs is when those smaller jobs are cut, not only are more people out of a job but, those folks that are working now have much more to do. They cannot simply focus on their main tasks, they are now expected to do the filing, the light cleaning, the extras, that ultimately slow them down, creating less productivity. When the productivity is lower, the customers are less satisfied and that will effect sales.

Then to top all this off, Democrats want to add more taxes to businesses. Even more employees may be cut, along with hiking the prices on the goods and services that the businesses offer. The companies do not pay the taxes, they pass them onto the consumer and the employees. So, the minimum wage worker may make more initially but, the raises are few and far between. The customer is now expected to pay more. Ultimately, we just pay even more in the end.

We pay more for goods and services and, we pay more in the loss of jobs.

In all fairness, just because you lower taxes on businesses, doesn't always mean that the company will hire more people or, that their goods or services will cost less. No, there will always be greedy people out there that try and take advantage of situations, robbing as many folks as they can but, guess what eventually happens? Some other company can come along and offer a better price, and a better service.

Let me share another story.

I used to work for a lab when I was going to college. This was a great company to work for. They gave all kinds of vacation; I got a paid day off for my birthday. The pay was okay. It wasn't terribly high but, we'd get bonuses and, fairly good benefits. All in all, we were treated very well. They were very understanding and, had many incentives.We even got large profit sharing checks at the end of each year.

The reason for all this came about because the owner had originally worked for another major lab. Her and her team had discovered a drug for animals that made the company a fortune. The company was very greedy though and, didn't even share any of the profits with the team of scientists. They claimed the patent and intellectual property as well.

So, the woman that became the owner of the lab I worked for left. She started her own company and brought over some of the other workers. The company has continued to grow and is a success now. When I left, they were growing even larger, moving into another building.

This is how economies grow. Again, greed does exist. It's not that conservatives do not recognize this but, we also know what happens to companies that do that. They eventually fail. Karma comes around and bites them on the butt. If you want to be successful and stay successful, you have to be a company that has morals and ethics. The free economy forces this because, by allowing freedom, you allow more opportunity, more improvement, and more growth.

More taxes restrict all of these things. In the end, it's always the little guy that ends up feeling the repercussions of taxes. Every time you hear someone claim they are here to help the "little guy" it usually means they are going to do something that will ultimately hurt them. So, if you like high unemployment and, more cost on goods and services, then by all means elect a Democrat.

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