AlbertWesker[RE]
Not Human Anymore
+144|7086|Seattle, WA

jonsimon wrote:

Pug wrote:

apollo_fi wrote:

Why not replace minimum wage with 'Guaranteed Minimum Income'?

Instead of attempting to set minimum standards of living with wage control, the state would provide every adult citizen with a 'salary' sufficient to provide basic accommodation, food and communications.

Now, someone will probably list the 10 obvious reasons why this is a bad idea. The reasons why this is a good idea are less obvious... but they're there & they're valid.
Sweet, we should all quit our jobs and live off the government's paychecks.

Oh, since I'm not working I don't have to pay taxes...and neither does anyone else.

Great idea.
Oh yeah, I'm sure you would give up everything you have so you can scrape by on canned foods in a one room apartment just so you don't have to work. Some life. Oh yeah, did I mention you'll be bored out of your mind? You can't afford anything for entertainment, even cable, and you can't aford to go to bars or out to any event unless it's free. Sounds like the high life to me!

This opinion that supplying a safety net means there is no incentive to work is absurd and reflects utter stupidity.

Edit: Oh, and for some practical evidence, why isn't everyone in Europe quitting their jobs and living off of government paychecks? I know Ireland and others have gaurenteed income.
Which is exactly why min wage needs to be adjusted with cost of living, and other things, not jacked up, I really hope the Dems are planning a phased adjustment otherwise inflation will rise quite quickly.

Let's also not forget how wonderful our unemployment is, just hear me out on this, this has been proven by statistical data:

Min Wage Adjustment w/out phase = Inflation increase
Inflation ^=Employment Down = Production Down = Economy down.

Good luck on it though Pelosi, you'll be popular in the eyes of the little guy, but not by anyone on the Wall.

Last edited by AlbertWesker[RE] (2006-11-09 22:11:57)

apollo_fi
The Flying Kalakukko.
+94|6973|The lunar module

Pug wrote:

You're just talking about changing the terms, which are...some people don't have to work, and paying more tax.  My wife doesn't work...she should get the minimum safety payment.  Or wait...probably not because she's married to me...so I'll divorce her, and we'll still live in the same house...so I'll still get the payment...
Not quite.

In a true Guaranteed Minimum Income system, your wife would get the check regardless of whether she was working or not, married to you or not.

Even you would get the check.
Cybargs
Moderated
+2,285|7159
Even if everything goes up including prices, wouldn't it help Americans when the travel to Europe and say ZOMG things are so cheap here! And vice versa.
https://cache.www.gametracker.com/server_info/203.46.105.23:21300/b_350_20_692108_381007_FFFFFF_000000.png
Pug
UR father's brother's nephew's former roommate
+652|6984|Texas - Bigger than France
Thanks Apollo.

This was in the news today.  Apparently bitching about taxes isn't only an American thing.  PS. Congrats to Norway.

http://www.foxnews.com/story/0,2933,228399,00.html
FrankieSpankie3388
Hockey Nut
+243|6973|Boston, MA
I don't know, if minimum wage goes up, so does inflation, you won't be able to afford anymore than you can now...
nlsme
Member
+48|6858|new york

jonsimon wrote:

Pug wrote:

jonsimon wrote:

You're assuming everyone has the choice to work. Those that cannot find jobs are just SOL, right? There are not as many jobs as there are people seeking them and they are not all in the same places as prospective workers. Frictional and Structural unemployment gaurentee this.

Your friend isn't eligible for uneployment, why don't you tell the feds so you don't have to support his lazy ass? Or are you just a hypocrit?

If you want to you can implement it so that your wife is not eligible even after you divorce her, your point has nothing to do with the validity of gaurenteed income, only possible implementation.

Yeah, they are higher, but so is the amount reinvested in the economy, and their economies are supporting long-term growth. Plus they don't have the most expensive standing army in the world, which, coupled with the monumental debt, consumes all our income tax dollars. Meanwhile their higher income taxes go towards their welfare, fancy that.

Higher taxes are good if the government is capable of supporting long term economic growth with them.
First, apologies for the first post.  Sarcasm wasn't the best choice.

Show me someone who can't get a job.  Can they not handle a shovel?  Can they not wait a table?  Can they not work as a temp in a temp agency?  As per frictional and structural unemployment - ever heard of the unemployment check?

Go back and read my post.  "I know someone who would not accept a $15k payment...".  He is not a friend, therefore am I a hypocrit?  And, guess what, he didn't get the $15k payment...so he chose not to get paid...a crime?  No, but it is an example of how social programs need to be policed.

And the example about my wife has to do with policing the system you are proposing, which will be funded by higher taxes yet again.  Policing is needed to keep those who shouldn't get paid get nothing.  Minimum wage is easier to police then a minimum safety payment.  So is the increased cost of police this worth it?  I would believe that it would be easier to commit "not working" fraud than other social programs in place.  Of course, there would be a few hundred thousand new government jobs to police the system...

As for Europe: are you willing to sacrifice your generation's standard of living and possibly the next two generations for long term growth?  Would you vote for that?  Do you think it would pass?  Isn't that a pipe dream?

The US economy has consistently outperformed Europe's.  Not everywhere, but usually it's stronger...current spending isn't a problem unless there's a massive problem with lack of economic growth.

In a sense, I'm asking you if it's any different than a minimum wage?  I believe it's a variation which has enforcement issues as well as no exchange of value for service provided.

Let's look at illegal immigration though - a low minimum wage decreases immigration.  Raising the minimum wage increases the number of illegals who are willing to work for less than minimum wage.  Safety net income ensures that someone doesn't have to work a minimum wage job.  Therefore, not many will be working minimum wage jobs.  These vacant jobs will be worked by more immigrants.  These illegal immigrants will not be paying taxes, yet supporting the social programs (road maintenance, police, fire, etc) will not be funded by as much money...therefore increasing taxes.  Plus the tax base has become smaller because less taxpaying citizens are working.
Unemployment checks are not forever, anyone who experiences long-standing frictional or structural unemployment, or does not fit the requirements of unemployment because they are just entering, or re-entering the workforce are excluded. It's not just about ability.

Maybe I'm misunderstanding what you're trying to say, but what I understood was that the person you know passed up a job for unemployment. If so, he is not eligible for unemployment, because he is not actively seeking work.

It's silly to debate or speculate upon the hypothetical costs of policing the hypothetical implementation of a proposal without first agreeing on the necessity, plausibility, and possibility of taking action. There are simply too many what ifs and hypotheticals.

The US economy also never had to deal with two world wars of heavy destruction, nor did it have to rebuild all it's industry. We've had an advantage over Europe for now, but as the oil dollar slips our economy is as well. Meanwhile, Europe has been growing in strength.

As for immigration, it's good for America. A stronger workforce and increased tax revenues are important for America as a nation. The opinion that illegal immigrants are not taxpayers is a myth. They pay sales and payroll taxes and those with fake SS numbers DO pay income taxes, because it is witheld by the employer. The truth is illegal immigrants are forced by circumstance to pay the majority of taxes, and collect none of the benefits, such as tax returns or refunds and social welfare programs like unemployment. The only reason they are here is because inflation and exchange rates in their home country justify the costs. Immigrants are the future of our nation and our social security, they could fund gaurenteed salary without being elligible.
this was the most idiotic thing i have ever read
nlsme
Member
+48|6858|new york

cyborg_ninja-117 wrote:

Even if everything goes up including prices, wouldn't it help Americans when the travel to Europe and say ZOMG things are so cheap here! And vice versa.
no it would just weeken the value of the dollar
jonsimon
Member
+224|6938

nlsme wrote:

this was the most idiotic thing i have ever read
I'm surprised you can read.
AlbertWesker[RE]
Not Human Anymore
+144|7086|Seattle, WA

jonsimon wrote:

nlsme wrote:

this was the most idiotic thing i have ever read
I'm surprised you can read.
Well jon you kinda dodged the whole immigration business, we're talking about ILLEGAL immigration, not the reg stuff........The stupidest thing you can do to a stupid person is say something stupid about them, it just makes you look stupid. 

But otherwise you had a very good post jon.

Edit: I mean jonsi? Was it you I had a talk with on what I should call you....I forget these things.

Edit2: Or is it I wasn't supposed to call you jonsi, omfg I'm so confused now.

Last edited by AlbertWesker[RE] (2006-11-10 11:52:46)

jonsimon
Member
+224|6938

AlbertWesker[RE] wrote:

jonsimon wrote:

Pug wrote:


Sweet, we should all quit our jobs and live off the government's paychecks.

Oh, since I'm not working I don't have to pay taxes...and neither does anyone else.

Great idea.
Oh yeah, I'm sure you would give up everything you have so you can scrape by on canned foods in a one room apartment just so you don't have to work. Some life. Oh yeah, did I mention you'll be bored out of your mind? You can't afford anything for entertainment, even cable, and you can't aford to go to bars or out to any event unless it's free. Sounds like the high life to me!

This opinion that supplying a safety net means there is no incentive to work is absurd and reflects utter stupidity.

Edit: Oh, and for some practical evidence, why isn't everyone in Europe quitting their jobs and living off of government paychecks? I know Ireland and others have gaurenteed income.
Which is exactly why min wage needs to be adjusted with cost of living, and other things, not jacked up, I really hope the Dems are planning a phased adjustment otherwise inflation will rise quite quickly.

Let's also not forget how wonderful our unemployment is, just hear me out on this, this has been proven by statistical data:

Min Wage Adjustment w/out phase = Inflation increase
Inflation ^=Employment Down = Production Down = Economy down.

Good luck on it though Pelosi, you'll be popular in the eyes of the little guy, but not by anyone on the Wall.
Okay, do the math, see how far off 10 may be from the value of 5.15 in the year it was raised, 1997. Inflation has been averaging around 4% since then. Using the rule of 7s with compounding rates, it should take about 17 years to double. In other words, minimum wage should be around 7-8 dollars right now simply to retain the constant purchasing power it had in 1997 dollars. Minimum wage should be linked with cost of living and adjusted constantly with inflation, but it has not been for the last 9 years, which merits a rather dramatic rise simply to achieve the adjustment you advocate.

As an aside, your little equation is general, oversimplified, and lacks firm base in economic thoery. There are many possible effects of any of the terms in your equation.
Stingray24
Proud member of the vast right-wing conspiracy
+1,060|6888|The Land of Scott Walker

jonsimon wrote:

. . .The opinion that illegal immigrants are not taxpayers is a myth. They pay sales and payroll taxes and those with fake SS numbers DO pay income taxes, because it is witheld by the employer. The truth is illegal immigrants are forced by circumstance to pay the majority of taxes, and collect none of the benefits, such as tax returns or refunds and social welfare programs like unemployment. The only reason they are here is because inflation and exchange rates in their home country justify the costs. Immigrants are the future of our nation and our social security, they could fund gaurenteed salary without being elligible.
Really?  The employer is paying payroll tax on people reporting under fake socials?  How does that happen when they're paid in cash?  There's no way an employer is going to be foolish enough to report any income for an employee using a fake social.

Along with those who are already citizens by birth, immigrants are part of the future of our nation - LEGAL ones.  Illegals don't pay into the system.  Doesn't make logical sense.  They're here under the radar and employers are paying them under the table.  Why report any income for them and cost the business money when they don't exist in the legal system?
AlbertWesker[RE]
Not Human Anymore
+144|7086|Seattle, WA

jonsimon wrote:

Okay, do the math, see how far off 10 may be from the value of 5.15 in the year it was raised, 1997. Inflation has been averaging around 4% since then. Using the rule of 7s with compounding rates, it should take about 17 years to double. In other words, minimum wage should be around 7-8 dollars right now simply to retain the constant purchasing power it had in 1997 dollars. Minimum wage should be linked with cost of living and adjusted constantly with inflation, but it has not been for the last 9 years, which merits a rather dramatic rise simply to achieve the adjustment you advocate.

As an aside, your little equation is general, oversimplified, and lacks firm base in economic thoery. There are many possible effects of any of the terms in your equation.
I agree it is pretty low, you should've just asked me , but yes on general you are right.  But pelosi wants to jack up WAY to quick, thats gonna at the bare minimum put undue stress on the market which won't be seen for  a few months to a year.  You haven't heard, she eventually wants it jacked up above 9 and 10 dollars within 3 years.....WOW.  Way too fast.

So jon, I'm glad that your posts are becoming more articulate, It sounds someone has been to econ class.  You have my respect, I have no karma points right now otherwise you'd get all of em, hope you have a good day.
jonsimon
Member
+224|6938

Stingray24 wrote:

jonsimon wrote:

. . .The opinion that illegal immigrants are not taxpayers is a myth. They pay sales and payroll taxes and those with fake SS numbers DO pay income taxes, because it is witheld by the employer. The truth is illegal immigrants are forced by circumstance to pay the majority of taxes, and collect none of the benefits, such as tax returns or refunds and social welfare programs like unemployment. The only reason they are here is because inflation and exchange rates in their home country justify the costs. Immigrants are the future of our nation and our social security, they could fund gaurenteed salary without being elligible.
Really?  The employer is paying payroll tax on people reporting under fake socials?  How does that happen when they're paid in cash?  There's no way an employer is going to be foolish enough to report any income for an employee using a fake social.

Along with those who are already citizens by birth, immigrants are part of the future of our nation - LEGAL ones.  Illegals don't pay into the system.  Doesn't make logical sense.  They're here under the radar and employers are paying them under the table.  Why report any income for them and cost the business money when they don't exist in the legal system?
No, they pay taxes. Employers that require SS are reporting the workers, and then must withold payroll and income taxes from their pay. How is reporting the worker's income costing the business money if the taxes are taken from the workers pay? Besides, you assume everyone is immoral and experiences no negative utility from breaking the law, something easily proven to be false.
AlbertWesker[RE]
Not Human Anymore
+144|7086|Seattle, WA

Stingray24 wrote:

Along with those who are already citizens by birth, immigrants are part of the future of our nation - LEGAL ones.  Illegals don't pay into the system.  Doesn't make logical sense.  They're here under the radar and employers are paying them under the table.  Why report any income for them and cost the business money when they don't exist in the legal system?
And that right there is what the left really needs to understand about immigration.  Good job sting.
AlbertWesker[RE]
Not Human Anymore
+144|7086|Seattle, WA

jonsimon wrote:

No, they pay taxes. Employers that require SS are reporting the workers, and then must withold payroll and income taxes from their pay. How is reporting the worker's income costing the business money if the taxes are taken from the workers pay? Besides, you assume everyone is immoral and experiences no negative utility from breaking the law, something easily proven to be false.
Assume everyone is immoral? No, but the MAJORITY of illegals don't pay taxes, use healthcare without paying for it, cmon that can't even be debated, thats just hard truth, and every politician knows that from left to right.

Some employers don't require SS, and thats another problem that needs to be dealt with. 

Anyone mention construction.........
jonsimon
Member
+224|6938

AlbertWesker[RE] wrote:

jonsimon wrote:

Okay, do the math, see how far off 10 may be from the value of 5.15 in the year it was raised, 1997. Inflation has been averaging around 4% since then. Using the rule of 7s with compounding rates, it should take about 17 years to double. In other words, minimum wage should be around 7-8 dollars right now simply to retain the constant purchasing power it had in 1997 dollars. Minimum wage should be linked with cost of living and adjusted constantly with inflation, but it has not been for the last 9 years, which merits a rather dramatic rise simply to achieve the adjustment you advocate.

As an aside, your little equation is general, oversimplified, and lacks firm base in economic thoery. There are many possible effects of any of the terms in your equation.
I agree it is pretty low, you should've just asked me , but yes on general you are right.  But pelosi wants to jack up WAY to quick, thats gonna at the bare minimum put undue stress on the market which won't be seen for  a few months to a year.  You haven't heard, she eventually wants it jacked up above 9 and 10 dollars within 3 years.....WOW.  Way too fast.

So jon, I'm glad that your posts are becoming more articulate, It sounds someone has been to econ class.  You have my respect, I have no karma points right now otherwise you'd get all of em, hope you have a good day.
Yeah, all the Macro is fresh in my mind right now. I wouldn't have a problem with a 9 dollar minimum wage, that's about the current record for constant purchasing power.
AlbertWesker[RE]
Not Human Anymore
+144|7086|Seattle, WA

jonsimon wrote:

AlbertWesker[RE] wrote:

jonsimon wrote:

Okay, do the math, see how far off 10 may be from the value of 5.15 in the year it was raised, 1997. Inflation has been averaging around 4% since then. Using the rule of 7s with compounding rates, it should take about 17 years to double. In other words, minimum wage should be around 7-8 dollars right now simply to retain the constant purchasing power it had in 1997 dollars. Minimum wage should be linked with cost of living and adjusted constantly with inflation, but it has not been for the last 9 years, which merits a rather dramatic rise simply to achieve the adjustment you advocate.

As an aside, your little equation is general, oversimplified, and lacks firm base in economic thoery. There are many possible effects of any of the terms in your equation.
I agree it is pretty low, you should've just asked me , but yes on general you are right.  But pelosi wants to jack up WAY to quick, thats gonna at the bare minimum put undue stress on the market which won't be seen for  a few months to a year.  You haven't heard, she eventually wants it jacked up above 9 and 10 dollars within 3 years.....WOW.  Way too fast.

So jon, I'm glad that your posts are becoming more articulate, It sounds someone has been to econ class.  You have my respect, I have no karma points right now otherwise you'd get all of em, hope you have a good day.
Yeah, all the Macro is fresh in my mind right now. I wouldn't have a problem with a 9 dollar minimum wage, that's about the current record for constant purchasing power.
Well here in WA state its already getting close to the 9 dollar mark.  This really should be a STATE issue not a federal one.  Too much federal interference usually doesn't help things.  Especially in regards to macro stuff
kr@cker
Bringin' Sexy Back!
+581|6992|Southeastern USA
epecially if you're going to use the cost of living/inflation argument, if varies so greatly by region it is best handle by each state, regardless, if you're going to waste money, i'd rather see the people just get help learning a skill or going to trade school
AlbertWesker[RE]
Not Human Anymore
+144|7086|Seattle, WA

kr@cker wrote:

epecially if you're going to use the cost of living/inflation argument, if varies so greatly by region it is best handle by each state, regardless, if you're going to waste money, i'd rather see the people just get help learning a skill or going to trade school
EXACTLY, thats why this is NOT A FEDERAL issue that Pelosi makes it out to be,  Of course its going to be POPULAR with mostly everyone, but this really needs to come down to the states.  I think the min wage should be increased don't get me wrong here, but once again not from the fed.
jonsimon
Member
+224|6938

Pug wrote:

jonsimon wrote:

Unemployment checks are not forever, anyone who experiences long-standing frictional or structural unemployment, or does not fit the requirements of unemployment because they are just entering, or re-entering the workforce are excluded. It's not just about ability.
Qualifications to be a Walmart greeter?  Qualifications to lift a shovel?  Qualifications to answer a phone?
If you don't have a HS degree, anyone with one will beat you out. It's about competition, not lacking skills.

Pug wrote:

PS. "Frictional unemployment" = unemployment between jobs, "structural unemployment" = shortages of talent in a certain category.  Frictional is temporary and not permanent by definition.  And structural means someone has to find a new skill/job category because their expertise is no longer in demand.  I understand the terms but they are not relevant.  Because...
Structural and frictional employment also include differences in geographical location. If the entire west coast of the country consists of poor, but highly qualified, Engineers, and the entire east coast consists of industrial headquarters in desperate need of designers, structural and frictional unemployment exist. They are relevant because:

Pug wrote:

Unemployment checks do run out, because they force people to find work instead of living off of what they have saved.  It's supposed to be temporary.  That is how it is designed to work - go get a job.  Can't find work in your field? Change fields.  Can't take that paycut? Move to a smaller house.  Having trouble making ends meet?  Well you work and get supplement welfare payments.  No jobs where you live?  Move. All this is already in the system.  It boils down to whether you believe people have the right to earn money without providing any service back for it.  A safety net = no service is required.
The poor cannot move. It takes money to move to the east coast, and the engineers cannot make money because there is no gaurenteed income or a sufficient minimum wage. Their skills are wasted and the west coast experiences a drastic surplus of unskilled labor while the east coast sees a shortage of skilled labor.

Pug wrote:

jonsimon wrote:

Maybe I'm misunderstanding what you're trying to say, but what I understood was that the person you know passed up a job for unemployment. If so, he is not eligible for unemployment, because he is not actively seeking work.
Yes.  The guy I know was getting DISABILITY checks...not unemployment.  Different set of rules, but its an example of how easy it is to exploit a flaw in the system.  If you earn more than a certain amount during the year, then the gov't will stop paying disability checks.  It a state/employer paid benefit here.  So, the $15k he would earn would cost him about $5k because he'd end up paying taxes...because disability payments are non-taxable but the $15k in income is.  Stupid loophole right?  But that's how it works...not relevant to our discussion though.  I'm just not a big fan of employing more people to "police" flawed government programs.

jonsimon wrote:

It's silly to debate or speculate upon the hypothetical costs of policing the hypothetical implementation of a proposal without first agreeing on the necessity, plausibility, and possibility of taking action. There are simply too many what ifs and hypotheticals.
Yet you have no problem proposing these ideas without considering the results of what you're proposing.  When faced with an actual example you are unable to argue anything but "well its only a hypothetical". You're entire argument proposal is hypothetical.  And I guess there are absolutely no drawbacks to this idea, only benefits...right?
I was merely pointing out the futility of arguing details when speaking in generalities.

Pug wrote:

jonsimon wrote:

The US economy also never had to deal with two world wars of heavy destruction, nor did it have to rebuild all it's industry. We've had an advantage over Europe for now, but as the oil dollar slips our economy is as well. Meanwhile, Europe has been growing in strength.
The war was like 60 years ago.  Absolutely relevant.  I guess Europe was in a rebuilding year in 2005? 

And I guess that if oil gets more expensive Europe won't be affected?
Complete destruction changes a nation, let alone a continent. Yes, starting from scratch 60 years ago will still show up today, considering the centuries of development that existed beforehand.

And when I said the oil dollar, I wasn't referring to prices. Currently oil can only be exchanged in USD cash. Should this policy end, the Euro would be the next runner up for acceptance, and when all of Europe doesn't have to invest in the USD anymore to purchase oil, well, you can imagine what a blow to our currency that will be.

Pug wrote:

True Europe has been growing...but you know what?  Europe is like 25 nations that have about equal GDP output of the US (by the way GDP includes the deduct for military spending and debt amongst other things).  What's wrong with having ONE country have about the same GDP as 25?  OOOOO...we might drop on the economy leaderboard from extremely high GDP to an almost extremely high GDP?  It's wrist slitting time.

http://en.wikipedia.org/wiki/List_of_co … age_of_GDP

US = 27%
Sweden = 51%
Norway = 45%
UK = 37%

Sure, they're getting a lot...would it work here?  Isn't you're argument that we can't afford what we're up to?  How come our tax rates are lower, and standard of living is roughly the same?

jonsimon wrote:

As for immigration, it's good for America. A stronger workforce and increased tax revenues are important for America as a nation. The opinion that illegal immigrants are not taxpayers is a myth. They pay sales and payroll taxes and those with fake SS numbers DO pay income taxes, because it is witheld by the employer. The truth is illegal immigrants are forced by circumstance to pay the majority of taxes, and collect none of the benefits, such as tax returns or refunds and social welfare programs like unemployment. The only reason they are here is because inflation and exchange rates in their home country justify the costs. Immigrants are the future of our nation and our social security, they could fund gaurenteed salary without being elligible.
Wow...you were doing pretty good until this one.  Here are the flaws in this paragraph...you should read up on some of this:

1) Illegal immigrants do not pay payroll taxes.  If an employer has a green card employee, then yes, they are required to withhold payroll taxes.  However, a green card employee is a legal immigrant, or someone who has applied to become a naturalized citizen is under the same rules.  The definition of an illegal immigrant is someone who does not have a green card and is not in the application process.

They are paid cash, do not report their wages to the gov't, nor does the company so it doesn't pay either.  If the wages aren't reported, there's no tax.  It doesn't increase payroll tax revenues.
Wrong. Any firm whose policy requires a SS and any immigrant who works with a fake SS are going to be reported, and taxes taken from their pay.

Pug wrote:

2) Another note on green card workers - they are required to be paid minimum wage by law.  Ever notice you always see stories about minimum wage versus illegal immigration cropping up?  It's because you can pay illegals below minimum wage...raising the minimum wage limit = a larger gap between $0 to the minimum....
And? Raising the minimum wage reduces quantity demand for labor to begin with, so the immigrants will only be picking up jobs we couldn't have worked anyway.

Pug wrote:

3) Illegals are not required to file a tax return because they haven't signed up for a green card, and the government doesn't know they exist.
Exactly, so they can't recieve any refunds.

Pug wrote:

4) Sales tax collections will not increase.  More illegals come into a region to work jobs.  People who already are working those jobs are displaced because a cheaper workforce comes in.  New jobs aren't created in this process.  Therefore the population in the region remains the same...except they are paid less so less money is spent in the local shops = less sales tax.
lol what flawed logic. More illegals come to a place to work, thus, there are more people there. Thus, more people must purchase goods. Thus, more sales taxes are collected. Where you get this whole "new jobs aren't created, thus there are no more people living there!" idea is beyond me.

Pug wrote:

5) LEGAL immigrants are a good way to increase the tax base.  Illegals do not fund social security because they are not paying anything but sales tax on what they buy.

6) They are here working illegally because companies are willing to pay them below minimum wage, and are willing to incur the light fine they get when they are caught.  Since the wage is higher here than where they are...if $3.50 an hour is worth it...then they're here.
Right, they're willing to pay them below minimum wage. So they're taking jobs that legal citizens could not take even if they wanted to. Wheres the damage in that? Are you saying we should remove the minimum wage to solve our immigration problem (which it would, for the most part) despite the depression it would cause?

Pug wrote:

7) "They don't get any of the refunds".  Do you know what a tax refund is?  Its a refund of the money you already have paid the government.  In other words, you gave the government your money...they held it for a while until you filed your tax return...and then paid it back without interest.  That is not a benefit...it's called getting your money back and you need to change your withholding on your paychecks...which by the way are not given to illegals because they are paid in cash.  Don't believe me?  http://www.irs.gov/pub/irs-pdf/f1040.pdf  See line 73.  If the amount your total payments are more than the tax you owe, this is the amount you overpaid...aka your refund.
Exactly, so any taxes illegal immigrants pay cannot be refunded. So the government concedes fewer tax dollars. In other words, the IRS gets to fuck them over should they overpay because there's nothing an illegal immigrant can do about it.
Pug
UR father's brother's nephew's former roommate
+652|6984|Texas - Bigger than France

jonsimon wrote:

No, they pay taxes. Employers that require SS are reporting the workers, and then must withold payroll and income taxes from their pay. How is reporting the worker's income costing the business money if the taxes are taken from the workers pay? Besides, you assume everyone is immoral and experiences no negative utility from breaking the law, something easily proven to be false.
Dude, pay attention.

You are talking about those who at working on a green card or have applied for citizenship.  These people are NOT illegal aliens.  Green carders pay tax via withholding, they are in the process of becoming naturalized citizens.  Green cards are hard to get for laborers...they are only issued to those who have a skill needed or a local sponsor.  So, those who come in illegally cannot apply for citizenship, because they'll be deported.

Illegal aliens are undocumented, and the employer doesn't report their services as payroll expense because: 1) they would be required to pay them minimum wage or improve the working conditions to OSHA standards, 2) they would have to pay the company match on the payroll tax, 3) they would attract the INS, the IRS and receive a fine for breaking the law, 4) they lose the workforce to deportation.

And, secondly, you don't know how payroll tax works...but then again most people don't.  There are two components of payroll tax - the employee's portion and the employer's MATCH. 

Here's how it works:
You're salary is $2,000.  You get a check for $2,000 - $153 = $1,847.  The company is also required to pay the match, which is $153.  So, the company's payroll expenses are $2,000 + $153 = $2,153.  (Based on 15.3% FICA/FUTA/Medicare in Texas, or 7.65% from the employee and 7.65% from the company).  The company remits $153 + $153 = $306 to the government.

Applying this to a $10/hr minimum wage raise:
Company's payroll expense per week = $10/hr x 40 hrs = $400.  Company payroll tax = $400 x 7.65% = $30.60.  So total payroll expense is $430.60 per week per a LEGALIZED employee.

Converting back to hourly: $430.60 / 40 = $10.77/hr.  As long as the employer pays an illegal and doesn't get caught not paying taxes, they can save some cash.

I live in South Texas.  There's laborers around here that won't do work unless you pay them cash.  Because then there is no "paper trail" for cashing a check.  I don't know where you're from, but enforcement around here is harder then arguing "everyone will make the morally right choice", it's day to day life where I live.  I know of companies which have hired a full factory shift of illegals...and got in trouble.  They were forced to pay some more to the government and a fine...but how many years have they been doing this without getting caught?  Did they stop?  Probably not...  They should get there asses handed to them in my opinion.

If illegals are willing to take risks for about $5.50/hr, don't you think $10.77/hr will mean their will be more of them?
Pug
UR father's brother's nephew's former roommate
+652|6984|Texas - Bigger than France

jonsimon wrote:

Pug wrote:

jonsimon wrote:

Unemployment checks are not forever, anyone who experiences long-standing frictional or structural unemployment, or does not fit the requirements of unemployment because they are just entering, or re-entering the workforce are excluded. It's not just about ability.
Qualifications to be a Walmart greeter?  Qualifications to lift a shovel?  Qualifications to answer a phone?
If you don't have a HS degree, anyone with one will beat you out. It's about competition, not lacking skills.
Just saw this. While posting the other...give me a sec.
jonsimon
Member
+224|6938

Pug wrote:

jonsimon wrote:

No, they pay taxes. Employers that require SS are reporting the workers, and then must withold payroll and income taxes from their pay. How is reporting the worker's income costing the business money if the taxes are taken from the workers pay? Besides, you assume everyone is immoral and experiences no negative utility from breaking the law, something easily proven to be false.
Dude, pay attention.

You are talking about those who at working on a green card or have applied for citizenship.  These people are NOT illegal aliens.  Green carders pay tax via withholding, they are in the process of becoming naturalized citizens.  Green cards are hard to get for laborers...they are only issued to those who have a skill needed or a local sponsor.  So, those who come in illegally cannot apply for citizenship, because they'll be deported.
No, I'm talking about illegal immigrants. Don't put words in my mouth.

Pug wrote:

Illegal aliens are undocumented, and the employer doesn't report their services as payroll expense because: 1) they would be required to pay them minimum wage or improve the working conditions to OSHA standards, 2) they would have to pay the company match on the payroll tax, 3) they would attract the INS, the IRS and receive a fine for breaking the law, 4) they lose the workforce to deportation.
1) Required by law, but who is going to force them to? Who has to find out? All firms are required to require SS, so unless we're talking about construction daylaborers, the firms are going to report the taxes, and as long as the IRS is happy, the only beuracracy they have to worry about is the INS. Who's limited number of agents perform physical raids and only check for citizenship, not to see if you're paying minimum wage.

2)Who will keep them from taking their end of the payroll tax out of the worker's wage? It's not like the illegal immigrant can complain to the INS and the IRS won't care as long as the taxes reported line up with sales.

3)The IRS doesn't investigate anything except the numbers. As long as tax reports match up with sales, they don't care who is employed. And the INS only does physical raids to check for citizenship, provide fraudulent proof of citizenship and they won't bug you.

4)The firms don't lose any workforce, because the government likes the tax dollars.

Pug wrote:

And, secondly, you don't know how payroll tax works...but then again most people don't.  There are two components of payroll tax - the employee's portion and the employer's MATCH. 

Here's how it works:
You're salary is $2,000.  You get a check for $2,000 - $153 = $1,847.  The company is also required to pay the match, which is $153.  So, the company's payroll expenses are $2,000 + $153 = $2,153.  (Based on 15.3% FICA/FUTA/Medicare in Texas, or 7.65% from the employee and 7.65% from the company).  The company remits $153 + $153 = $306 to the government.

Applying this to a $10/hr minimum wage raise:
Company's payroll expense per week = $10/hr x 40 hrs = $400.  Company payroll tax = $400 x 7.65% = $30.60.  So total payroll expense is $430.60 per week per a LEGALIZED employee.

Converting back to hourly: $430.60 / 40 = $10.77/hr.  As long as the employer pays an illegal and doesn't get caught not paying taxes, they can save some cash.
I already knew about employers match, thanks for being stuck up. Oh, and what happens when the IRS notices the employer is somehow running their business without any labor? Or what about the huge cash transfers? Anything over 10k attracts the FBI and the NSA who now think you're dealing drugs.

Pug wrote:

I live in South Texas.  There's laborers around here that won't do work unless you pay them cash.  Because then there is no "paper trail" for cashing a check.  I don't know where you're from, but enforcement around here is harder then arguing "everyone will make the morally right choice", it's day to day life where I live.  I know of companies which have hired a full factory shift of illegals...and got in trouble.  They were forced to pay some more to the government and a fine...but how many years have they been doing this without getting caught?  Did they stop?  Probably not...  They should get there asses handed to them in my opinion.

If illegals are willing to take risks for about $5.50/hr, don't you think $10.77/hr will mean their will be more of them?
Imagine if they never got caught because they reported taxes taken from their workers wages? The government never would have noticed and they'd be making greater profits.

What do illegals risk by coming here? Being sent back home so they can spend whatever they were able to send back? It's not willingness to take risks, its about oppertunity costs, silly. Way to demonstrate your grasp of economics.
Stingray24
Proud member of the vast right-wing conspiracy
+1,060|6888|The Land of Scott Walker

Pug wrote:

. . .
Illegal aliens are undocumented, and the employer doesn't report their services as payroll expense because: 1) they would be required to pay them minimum wage or improve the working conditions to OSHA standards, 2) they would have to pay the company match on the payroll tax, 3) they would attract the INS, the IRS and receive a fine for breaking the law, 4) they lose the workforce to deportation.

And, secondly, you don't know how payroll tax works...but then again most people don't.  There are two components of payroll tax - the employee's portion and the employer's MATCH. 

Here's how it works:
You're salary is $2,000.  You get a check for $2,000 - $153 = $1,847.  The company is also required to pay the match, which is $153.  So, the company's payroll expenses are $2,000 + $153 = $2,153.  (Based on 15.3% FICA/FUTA/Medicare in Texas, or 7.65% from the employee and 7.65% from the company).  The company remits $153 + $153 = $306 to the government.

Applying this to a $10/hr minimum wage raise:
Company's payroll expense per week = $10/hr x 40 hrs = $400.  Company payroll tax = $400 x 7.65% = $30.60.  So total payroll expense is $430.60 per week per a LEGALIZED employee.

Converting back to hourly: $430.60 / 40 = $10.77/hr.  As long as the employer pays an illegal and doesn't get caught not paying taxes, they can save some cash.
. . . If illegals are willing to take risks for about $5.50/hr, don't you think $10.77/hr will mean their will be more of them?
That's what I was trying to say, but didn't think I had to spell it out.  +1
Pug
UR father's brother's nephew's former roommate
+652|6984|Texas - Bigger than France
Hiya Jon.  This will be my last post on this topic.  You haven't researched any of this at all.  So this is fruitless.

I thought numbers would be helpful, since the quote code is getting hard.  I thought I would actually post the definitions.  Read them because you are not correct in your definitions, which is causing my excessive explanation.

1)Wiki: Structural unemployment involves a mismatch between workers looking for jobs and the vacancies available often despite the number of vacancies being similar to the number of unemployed people. In this case, the unemployed workers lack the specific skills required for the jobs, or are located in a different geographical region to the vacant jobs. A solution to this problem is provide an infrastructure that offers training in these areas so that the demand for these jobs can be met. For example the USA provides community colleges so that more people can have the opportunity to increase their skills, which in turn increases the supply of labour in skilled areas.

Frictional unemployment (wiki again)
This unemployment involves people being temporarily between jobs, searching for new ones; it is compatible with full employment. (It is sometimes called search unemployment and is seen as largely voluntary.) It arises because either employers fire workers or workers quit, usually because the individual characteristics of the workers do not fit the individual characteristics of the job (including matters of the employer's personal taste or the employee's inadequate work effort). Some employers — such as fast-food restaurants and other providers of Jobs in secondary labor markets — use management strategies that rely on rapid turnover of employees, so that frictional unemployment is normal in these sectors.

But some frictional unemployment is beneficial, since it allows workers to get the jobs that fit their wants and skills best and the employers to find employees who promote profit goals the most. It is a small percentage of the unemployment, however, since workers can often search for new jobs while employed — and employers can seek new employees before firing current ones.

So let me ask you a quick question - about having a HS degree.  Everyone in the US is given the chance for a HS degree.  And last I checked, based on your comments on illegal immigration, are you telling me that every illegal has a HS degree and is qualified to work?  I mean, they are competing for the same jobs that the minimum wages won't work.  So is it true that a laborer needs a HS degree?  NOOOOOOOOOO

2) The East coast / West coast thing: 
a) The west coast has POOR engineers that are unemployed.  Somehow they were able to pay for a university degree, but can't afford to move?  Seriously?

b) Look above - this is structural unemployment.  Frictional is temporary, and is not related to moving.  However structural unemployment means the employee has a choice - change jobs or move.  Okay, let's say the highly qualified engineer with a university degree is too poor to move.  Do you think perhaps the HIGHLY TRAINED UNIVERSITY GRADUATE might consider another field that actually is hiring in the city?  The definition of structural unemployment implies people HAVE TO change careers, yet you are saying they can't because they can't find a job in their field?

3) Currency - the Dollar & the economy

Really what you mean here is the currency standard.  The dollar is the international standard, which results only in a more gradual change in the economy for the nation who owns it.  Meaning - both the peaks and the valleys are never as high or low as they would be without this advantage.  Secondly, growth and contractions are more gradual.  I kind of agree with you somewhat on the investment side, but most people will invest overseas to balance their portfoilo.  There will be a little less investment in the US, but it won't be cut off.

4) You need to understand what an illegal alien is.  They are people who are working for companies who pay them on the side.  You are confusing them with those in the naturalization process.

5) Ok, this one is weird:
And? Raising the minimum wage reduces quantity demand for labor to begin with, so the immigrants will only be picking up jobs we couldn't have worked anyway.

Are you saying that now more people will be willing to work a minimum wage jobs?  Well, companies don't want to pay employees more.  Illegal immigrant wage opportunity just doubled.  There's a flood of new immigrants now.  They are in competition for work here, so they are now willing to work for $7/hr.  My hypothetical company doesn't want to double payroll expense.  I'm going to save $3/hr and hire an illegal.  So you are absolutely wrong on this point.

6) Exactly so they can't receive refunds.  LOL - you mean they can't receive money they didn't pay.  Are you saying a refund is a benefit?  An IRS refund is your own damn money!!!

7) Sales tax logic - see #5.  Seriously, you need to read something on the relationship between minimum wage and illegal immigration.  More people are willing to come here for $10/hr than $5/hr.  How many businesses will be loyal to the law, and therefore enjoy a DOUBLING of their payroll expenses?  How many will survive the expense?  Will the public enjoy that their products now cost more?  Will people now buy less from the US and import more?  Inflation anyone?  Or, wait...more illegals are here and are in competition for the same jobs...will companies just pay them the same amount and fire everyone else?

You displace the current workforce by forcing companies to fire their employees by 1) finding a cheaper workforce, 2) reducing the demand on their products by increasing the cost of the products they sell, 3) increase the competition for a lower paid workforce.

You are missing the connection - if there are more illegals in a region, they need to actually get paid to spend money and get charged sales tax.

8) Holy crap - you don't understand that raising the minimum wage increases inflation.  Holy crap - you don't understand the relationship between the minimum wage and illegal immigration.  Go to wiki.  READ SOMETHING.

9) IRS refunds.  Again, you don't know what an illegal alien is.  And green carders ARE entitled to an IRS refund if they overpay.  So again you are wrong.

Jonsimon - give it a rest.  You have absolutely no idea what you are talking about.

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