When receiving paychecks, most employees will agree that
one can never be paid enough, however, their employers may
disagree with that statement and believe that they are getting paid
far greater than they are entitled to. Thus creating a conflict
between minimum wages. Minimum wage is the least amount of
money that an employer may pay their employees. The federal
minimum wage that is experienced by many members of the
United States, currently is at $5.15, and is under debate as to
whether or not it should be raised an additional dollar per hour, to
make the minimum wage $6.
15 (1). As a result of dissatisfaction
with the minimum wage, debates whether or not the wage should
be lifted to please more workers are currently taking place. The
process to finding the perfect minimum wage to please both
employee and employer are still under way, and has been an
important controversial issue for many decades.
For many, a raise in minimum wage would be fantastic,
mainly employees. For others such as employers, they look down
upon the idea of increasing the salary for their workers. The
process for increasing the minimum wage would start by paying
fifty cents more on January 1st of 2001, and adding the other fifty
cents exactly one year later on January 1st of 2002 (1).
this proposal, it would allow for business tax breaks worth $76
billion dollars over ten years, which is down from $122.7 billion in
an earlier House version of the bill” (1). As unemployment has
reached a recent 30-year low, some employers are looking to
change this fact around by hiring in greater numbers (3). But as
employers may in fact do try to change this unemployment trend,
this also means more money will be spent on trying to match the
minimum wage. If they should try and match the minimum wage,
the employer will be spending more money just to have more
workers that he may not need. Say the minimum wage stayed the
same for a while, employment may not be such a big problem for
some for a little while, but as inflation makes its mark, sooner or
later, minimum wage will raise.
As long as salary is down, demand
for employment can raise, however, if the salary was to increase,
employment opportunities for the unemployed would decrease (3).
Employment would be more “stable” and more people would be
employed. In contrast, the minimum wages increased, then more
employment cuts would be made since the employer would dislike
the fact of losing more money in pay checks, and would rather
lose staff, and have the smaller work force work harder. Many feel
as though raising the minimum wage would help fight poverty, in
that raising the income, would help families to strive to move from
slums or building projects and promote them to live a richer
lifestyle (3). To help people in the working industry, minimum
wages must go up to help eliminate poverty and to keep
A new issue that has risen recently, is the impact upon small
businesses (4). With the rise in wages for employees, small
businesses would be greatly affected.
These small businesses
wouldn’t be able to handle an increase in salaries the way that a
large well-known business could. A small business could be lost as
a result of the inability to continue to pay their employees at least
a minimum wage. However, there may be light at the end of their
tunnel. A possible $76 billion dollar tax budget would be supplied
as a result of the increase in the minimum wage, which can be
used to help small business overcome their predicament. The
money would be spent in tax breaks over ten years to help provide
businesses with a deductibility of health insurance premiums(4).
Nearly a 30% rise in meal deductions would be experienced(4).
The amount of company equipment eligible for a write-off will
increase form $19,000 to $35,000(4). Also with small businesses, it
would “restore the law that allows a business seller to pay taxes in
installments rather than a lump sum in the year of the sale”(4)
With all of the advantages of the one dollar raise in minimum
wage, it will save small businesses a lot of well earned money in
the long run. With a rise in the amount of minimum wage
including the addition to the $76 billion tax aid, small business
would be able to save a small fortune dealing with health
insurance, meal deduction, and the more favorable tax treatment
Another issue to consider is the value of the current .