Tags: Minimum Wage | minimum wage | alternatives | bolster | working class

4 Alternatives to Minimum Wage Hike to Bolster the Working Class

By    |   Wednesday, 27 May 2015 10:34 AM

In his 2014 State of the Union Address, President Barack Obama exhorted Congress to increase the federal minimum wage from its current $7.25 per hour to $10.10 per hour in order to support the working class.

However, this proposal has met with fierce opposition from members of Congress and policy analysts alike because of their concerns that this universal wage increase would only decrease the jobs currently available and dramatically increase the national unemployment rates.

Urgent: Do You Think the Minimum Wage Should Be Raised?

Thus, here are four alternative solutions to the president’s proposed minimum wage hike:

1. Expand the Earned Income Tax Credit (EITC)

Families living in poverty would benefit from this expansion because eligibility is based upon total family income rather than on an individual’s income and minimum wage, according to the American Enterprise Institute. EITC increases and wage subsidies would bolster employment rates, as well.

2. Decrease Health Insurance Premiums

The Bloomberg View notes that one of the main reasons why wages have stagnated is because of increasing health insurance premiums. If they were to be lowered and tax breaks were to be scaled back, wages could rise.

Vote Now: How Do You Feel About the Minimum Wage?

3. Implement Training Programs for Minimum Wage Workers

For low-skilled workers with entry-level jobs, it is difficult to acquire the skills necessary to succeed and thrive if there is little incentive to do so, the Houston Chronicle notes. If companies offered these workers further training to increase their skills and marketability, their employee value will increase.

4. Tax Reduction for Small Businesses

By lowering taxes for small businesses and entrepreneurs, the U.S. economy can be strengthened by creating the incentive and ability for employers to create more jobs and hire more employees, according to Forbes. This will help to counteract the significant job losses that would most likely occur if the federal minimum wage were to be increased.

Tell Us: Should the Government Raise the Minimum Wage?

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In his 2014 State of the Union Address, President Barack Obama exhorted Congress to increase the federal minimum wage from its current $7.25 per hour to $10.10 per hour in order to support the working class.
minimum wage, alternatives, bolster, working class
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2015-34-27
Wednesday, 27 May 2015 10:34 AM
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