[RD] What is the Point of a Minimum Wage?

[El_Machinae]

The weirdest part of the SALT changes is that (iirc) places with high state taxes already tended to be net contributors to the federal system.

That said, a tax cut at the lower end of the scale reduces the opportunity cost of employment. It's not a terrible idea, but it's not a panacea. It's part of a total tool kit designed to improve lives. It has its place.

 

[metalhead]

The weirdest part of the SALT changes is that (iirc) places with high state taxes already tended to be net contributors to the federal system.

Well, it's not necessarily weird for that reason.

The weirdest part is that by taking away a popular tax deduction typically utilized by high propensity voters who are largely sympathetic to a lot of Republican talking points surrounding taxation and spending, they drove turnout for Democrats in a lot of swing districts, in a midterm year they were already destined to struggle in.

Their tax package was already driving deficits. Why throw in a provision that is just going to lose you additional seats in the House? In a bill that was already bad policy in almost every possible way, it's like they put in a poison pill that they forgot to take out or something.

A tax cut is pointless for people who have no taxable income.

However a refundable tax credit is not.

 

[hobbsyoyo]

Why throw in a provision that is just going to lose you additional seats in the House? In a bill that was already bad policy in almost every possible way, it's like they put in a poison pill that they forgot to take out or something.

I have to wonder how much of their planning is driven by the artificial floor they have on House seats. What I mean is that it's pretty clear that gerrymandering has worked. We only have to go back to 2010 to see that the Republicans picked up 20 more seats than the Dems did this time around despite getting millions less votes. I seriously think that factors into their planning as they know they can push unpopular policies even harder than they normally would knowing that it will cost them less seats than normal.

However a refundable tax credit is not.

Does that only come at the end of the tax year or is it given up front? If it comes at the end of the year, then it doesn't help people much - particularly that first year it's introduced. This isn't to say it's pointless but it's not a substitute for a real income boost in my opinion because a future IOU from the government doesn't help pay bills today - again, particularly in that first year. After that you can take the money and use it throughout the following year as you need to but that first year is going to be rough if you really need the money.

 

[Synobun]

In Canada, our refundable tax credit is calculated once a year and then distributed quarterly.