The Keynesian myth of mandating prosperity actually hurts the lower middle class and the working poor

Something for nothing is appealing to voters, so politicians make empty promises that are good politics but bad economics

A Seattle-based company called Gravity Payments has instituted a minimum salary of $70,000/yr

This has given him great publicity, but how will this work in his company?

Lower paying jobs will have to be eliminated, because they don't represent enough productivity to justify a raise that doubles the employee's cost

Higher salaried workers are not hurt because they keep their job and perhaps get a raise for picking up the extra duties formerly handled by lower-salaried workers

The most recent political gimmick in the State of Connecticut is a tax masquerading as a minimum wage law

The Democratic State Legislature have proposed a law that will fine companies of 500 or more employees $1/hr for any worker who is paid under $15/hr

How will this work in the State of Connecticut?

Right away, business just over 500 employees will pare down to fall under the new regulation, so jobs will be lost

In reality, this is just a tax increase on the people who can least afford it

For employees who are currently working at the minimum wage, a $1 fine is cheaper than a raise from the current $9.15 rate to $15/hr, if they do not eliminate that person's job

This is essentially another employment tax that will result in higher prices across the board

Neither the employee nor the employer benefits

For employees who are working above the current minimum of $9.15/hr a raise would cost the employer more than the $1 fine

According to minimum wage law, it is illegal to cut the worker's pay - the only option is to cut the worker

The penalty does not apply to higher paid workers; it only applies to jobs between the current minimum wage and the new minimum wage

It will be cheaper to pay the tax than to raise wages, but there will be less money to to toward employees because a large percentage of the workers' wages are going toward a tax

The reality of this new law, championed for the "little guy" is that the working poor will pay a higher marginal state income tax than the richest hedge fund managers in the state

Will the voters be able to figure it out elected officials are going after the working poor?

This tax will also raise the cost of living, wich also affects the poor more directly

Packaging a tax to pass off as minimm wage is fraud