Quote:
Originally Posted by jeffk
In addition, a 5% higher wage, doesn't deliver 5% more to your pocket. Taxes are higher, medical insurance is higher, other items deducted from your pay go up; often at a rate more than the 5% increase you got. In the end, you end up worse off than you were.Then the politicians "help" by raising the minimum wage again and the cycle repeats. If the solution was to increase minimum wage, the "problem" would have been "fixed" many years ago. It isn't fixed because the minimum wage is NOT a solution that works.
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I would question this part of your post...
Granted you will pay more in taxes (roughly 33% for the group of earners we are talking about and more so if you move to a higher tax bracket). So that is all relative. You still "take home" more money.
Medical Insurance is a fixed rate. It does not fluctuate based on pay.
Other items go up:
Child support type items could go up (rightfully so).
401K's will go up (as they should and good for you for a bigger contribution) but not enough to say it is a 5% hike if it is PRE-tax. This will only put you in a better position in life/