LETTERS: MINIMUM-WAGE RAISE AFFECTS TAX BITE TOO

To the editor:

There has been a lot of attention in the news media lately on raising the minimum wage. This subject has prompted quite a bit of discussion and has stirred a great deal of controversy. It might be well if the public understood that an increase in the minimum wage of the suggested 90 cents an hours -- equivalent to a 21 percent pay raise -- is not just another cash raise. Other taxes are involved too, such as Social Security (7.65 percent), worker's compensation and state unemployment taxes. It's easy to campaign for an increase in the other guy's cost of doing business when it carries the illusion of more goodies for the worker.

Let's consider who will feel the impact of this proposal. It's not just the worker who aims to pocket more take-home pay, but it is the consumer who must ultimately bear the brunt of this as an increase in the cost of living. Now we're looking at the cost of goods and services for everybody taking a hike.

Another consideration is this: The minimum wage was never intended to be a living wage. It is merely a starting point for entry-level, unskilled, inexperienced or teen-age workers. Most of the workers earning this wage are on their way to something better through additional education or training. The scary thing about all of this is that at $4.25 and hour many of the people are overpaid, since these jobs are often menial or common labor. Anyone can do these jobs while they're waiting for something better to come along or get more training or a better education.

Here's some real food for thought: Rather than an increase in the minimum wage of 90 cents an hour, why not reduce taxes for the working class by 90 cents and hour? What a fantastic idea. That would enable a worker to keep more of what he earns in his pocket rather than turn it over to a bloated federal bureaucracy to redistribute to the welfare class or waste on frivolous pork-barrel projects. If the compassionate liberals really want to show their concern for the working man, let them start where it really counts: with lower taxes which result in more net take-home pay and more disposable income.

GERALD W. BEAM

Dexter