Government Benefits worth the Hard Work


credit: Blog Al

Since President Obama's proposal to increase minimum wage from $7.25 per hour to $9 by 2015, some states and cities have already lifted their employee salaries above the current minimum wage.

All the hard work is paid off since the government provides tax credits for people with minimal income and assets. The earned income tax credit and child tax credit can decrease a minimum-wage worker's taxes below zero, which results in a reimbursement from the government that can more than compensate for the payroll taxes and safety-net benefit losses.

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