Raising Minimum Wages for Large Corporations

[Felis Leo]

Recently, Jeff Bezos said he supported an increase in corporate taxes to 28%, which to many might seem like paying his fair share to benefit the commonwealth...until one realizes that Amazon pays nothing in corporate taxes. Corporate tax rates could go back to 90% and Bezos would not pay a penny in them, and it would only damage what little competition he has.

So these monopolistic corporations, especially those like McDonalds, Wal-Mart, Amazon, Comcast and their ilk, get away with paying their workers starvation wages, and passing on the savings not to the consumer (it is to laugh), but rather, the passing them on to the shareholders of corporate stock. Thus, too many corporations pays little to nothing in corporate taxes, and they pay little to nothing in payroll taxes because so many employees work close to the poverty level. Thus, as many

If our country is letting Unions go the way of the Dodo bird leaving employees unable to collectively bargain for higher wages or better working conditions (if indeed they are even considered "employees" and not independent contractors), and the Federal government is increasingly hesitant to pursue anti-monopoly actions against these dominant firms who crush all competition and keep the price of labor low, we need a better solution that forces these companies to pay their fair share both to employees and to the commonwealth through payroll taxes. I therefore have a modest proposal that would not require some radical rewriting of the tax code that corporations would just skirt around anyway through a variety of loopholes.

For all small private companies and small-cap companies with a market capitalization of less than $2 billion, keep the state/federal minimum wage where it is wherever the company has operations.

For mid-cap corporations, i.e., those with a market capitalization between $2 billion and 10 billion, they shall be required to pay their employees no less than the minimum wage plus an additional 50%. Thus, if the minimum wage for one state in which the corporation's branch is $10.00, the least the company can pay their employees is $15.00 per hour. And this applies to contract workers and independent contractors as well.

And for large-cap corporations, i.e., those with a market capitalization of $10 billion or more, they shall be required to pay their employees and independent contractors no less than twice the present minimum wage for the state in which any branch of the corporation. Therefore, if the minimum wage of one state in which the corporation is located is $10.00, the corporation must pay its employees and independent contractors working in that state no less than $20.00 per hour.

This would increase the livelihoods of millions of workers who do not enjoy union protection and it would force corporations to pay greater taxes through payroll. And if larger corporations balk and threaten to pull up stakes from certain states where they were busily wiping out competition, I say good riddance. Better to have thirty small companies in a particular market competing for consumer's dollars and for labor rather than three large corporations (or even fewer) creating anti-consumer and anti-labor cartels.

What say you all?

EDIT: I would add the proviso that any small corporation with a majority of shares owned by a large-cap corporation must pay the greater wage that would have applied to the larger corporation. That way a company like Amazon or Wal-Mart could not simply form hundreds of tiny corporations whose stock is placed in trust in holding companies or buy up small local chains in order to keep wages depressed.

 

[RabidAlpaca]

I like your ideas. I think both right and left have forgotten that for capitalism to work, there has to be active protection against monopolies and the encouragement of competition. We seem to do the exact opposite of that. In our perverse system we encourage monopolies and subsidize the biggest corporations while penalizing the smallest ones. Mom and Pop businesses and the middle class pay a higher tax rate than Jeff Bezos and Amazon. We should be increasing taxes and regulations in a linear proportion to the company's size so that it becomes impractical for a monopoly to work.

The minimum wage, adjusted for inflation, has been stagnant for DECADES, and it is in drastic need of updating to current prices and living standards. It makes no sense that minimum wage workers make LESS every year they work. I'd also like to add that the only way this could work is if it was done at the federal level. Letting companies use economic terrorism and play the states against each other in a race to the bottom is how we got here in the first place.

 

[Felis Leo]

I like your ideas. I think both right and left have forgotten that for capitalism to work, there has to be active protection against monopolies and the encouragement of competition. We seem to do the exact opposite of that. In our perverse system we encourage monopolies and subsidize the biggest corporations while penalizing the smallest ones. Mom and Pop businesses and the middle class pay a higher tax rate than Jeff Bezos and Amazon. We should be increasing taxes and regulations in a linear proportion to the company's size so that it becomes impractical for a monopoly to work.

Well, I would go one step further, RabidAlpaca: Our country needs to pursue anti-monopoly policy that we have let whither on the vine for the past forty years. We need Teddy Roosevelt-style Republicans and hardened progressive Democrats to break up every single one of these monopolistic companies, of which there are dozens at the national and state levels, controlling technology, finance, communication, agriculture and medicine. They have amassed far too much unearned wealth at the expense of employees and smaller competitors and, more importantly, far too much unaccountable political power (which I find to be the greater danger).

 

[Razoo]

Make minimum wage $64,500 annually ....... a wage always allows employers to know exactly what they are paying out annually. No questions need to be ask. Spending increases, new employment gets a boost, economic growth sees some daylight, crime goes down and bingo we have Make America Green Always on the table.

Now we are all sharing the load ...........

 

[Felis Leo]

Make minimum wage $64,500 annually ....... a wage always allows employers to know exactly what they are paying out annually. No questions need to be ask. Spending increases, new employment gets a boost, economic growth sees some daylight, crime goes down and bingo we have Make America Green Always on the table.

Now we are all sharing the load ...........

That would be an unacceptable increase, Razoo, because that would mean that the only employers remaining would be massive corporations and governments able to afford $31.00 per hour. Amazon could almost certainly afford to pay its workers that wage. But a local green grocer or pizza parlor? Perhaps if you would be comfortable paying $40.00 for a take-n-bake. That is right up there with proposing all Americans should pay $200,000.00 in income taxes every year no matter their level of wealth or income.

 

[Razoo]

It's best to begin negotiating at the top. On the other hand $64,500 is not that much at todays cost of living.

Everything increases in cost. Wages have not increased at same pace. $31 per hour is about right for 2021.

Economic growth would take a step up which is part of my green vision. I say $35 per hour would pay for itself as all would have more money to take care of business thus employment growth would notice activity.

America has become stingy and falling behind considering the USA is the wealthiest nation on the planet.

 

[Evilroddy]

Recently, Jeff Bezos said he supported an increase in corporate taxes to 28%, which to many might seem like paying his fair share to benefit the commonwealth...until one realizes that Amazon pays nothing in corporate taxes. Corporate tax rates could go back to 90% and Bezos would not pay a penny in them, and it would only damage what little competition he has.

So these monopolistic corporations, especially those like McDonalds, Wal-Mart, Amazon, Comcast and their ilk, get away with paying their workers starvation wages, and passing on the savings not to the consumer (it is to laugh), but rather, the passing them on to the shareholders of corporate stock. Thus, too many corporations pays little to nothing in corporate taxes, and they pay little to nothing in payroll taxes because so many employees work close to the poverty level. Thus, as many

If our country is letting Unions go the way of the Dodo bird leaving employees unable to collectively bargain for higher wages or better working conditions (if indeed they are even considered "employees" and not independent contractors), and the Federal government is increasingly hesitant to pursue anti-monopoly actions against these dominant firms who crush all competition and keep the price of labor low, we need a better solution that forces these companies to pay their fair share both to employees and to the commonwealth through payroll taxes. I therefore have a modest proposal that would not require some radical rewriting of the tax code that corporations would just skirt around anyway through a variety of loopholes.

For all small private companies and small-cap companies with a market capitalization of less than $2 billion, keep the state/federal minimum wage where it is wherever the company has operations.

For mid-cap corporations, i.e., those with a market capitalization between $2 billion and 10 billion, they shall be required to pay their employees no less than the minimum wage plus an additional 50%. Thus, if the minimum wage for one state in which the corporation's branch is $10.00, the least the company can pay their employees is $15.00 per hour. And this applies to contract workers and independent contractors as well.

And for large-cap corporations, i.e., those with a market capitalization of $10 billion or more, they shall be required to pay their employees and independent contractors no less than twice the present minimum wage for the state in which any branch of the corporation. Therefore, if the minimum wage of one state in which the corporation is located is $10.00, the corporation must pay its employees and independent contractors working in that state no less than $20.00 per hour.

This would increase the livelihoods of millions of workers who do not enjoy union protection and it would force corporations to pay greater taxes through payroll. And if larger corporations balk and threaten to pull up stakes from certain states where they were busily wiping out competition, I say good riddance. Better to have thirty small companies in a particular market competing for consumer's dollars and for labor rather than three large corporations (or even fewer) creating anti-consumer and anti-labor cartels.

What say you all?

EDIT: I would add the proviso that any small corporation with a majority of shares owned by a large-cap corporation must pay the greater wage that would have applied to the larger corporation. That way a company like Amazon or Wal-Mart could not simply form hundreds of tiny corporations whose stock is placed in trust in holding companies or buy up small local chains in order to keep wages depressed.

Felis Leo:

What say I? I say hell, yes! An excellent post and follow-up comments. Bravo, sir!

Cheers and be well.
Evilroddy.

 

[mrjurrs]

Recently, Jeff Bezos said he supported an increase in corporate taxes to 28%, which to many might seem like paying his fair share to benefit the commonwealth...until one realizes that Amazon pays nothing in corporate taxes. Corporate tax rates could go back to 90% and Bezos would not pay a penny in them, and it would only damage what little competition he has.

So these monopolistic corporations, especially those like McDonalds, Wal-Mart, Amazon, Comcast and their ilk, get away with paying their workers starvation wages, and passing on the savings not to the consumer (it is to laugh), but rather, the passing them on to the shareholders of corporate stock. Thus, too many corporations pays little to nothing in corporate taxes, and they pay little to nothing in payroll taxes because so many employees work close to the poverty level. Thus, as many

If our country is letting Unions go the way of the Dodo bird leaving employees unable to collectively bargain for higher wages or better working conditions (if indeed they are even considered "employees" and not independent contractors), and the Federal government is increasingly hesitant to pursue anti-monopoly actions against these dominant firms who crush all competition and keep the price of labor low, we need a better solution that forces these companies to pay their fair share both to employees and to the commonwealth through payroll taxes. I therefore have a modest proposal that would not require some radical rewriting of the tax code that corporations would just skirt around anyway through a variety of loopholes.

For all small private companies and small-cap companies with a market capitalization of less than $2 billion, keep the state/federal minimum wage where it is wherever the company has operations.

For mid-cap corporations, i.e., those with a market capitalization between $2 billion and 10 billion, they shall be required to pay their employees no less than the minimum wage plus an additional 50%. Thus, if the minimum wage for one state in which the corporation's branch is $10.00, the least the company can pay their employees is $15.00 per hour. And this applies to contract workers and independent contractors as well.

And for large-cap corporations, i.e., those with a market capitalization of $10 billion or more, they shall be required to pay their employees and independent contractors no less than twice the present minimum wage for the state in which any branch of the corporation. Therefore, if the minimum wage of one state in which the corporation is located is $10.00, the corporation must pay its employees and independent contractors working in that state no less than $20.00 per hour.

This would increase the livelihoods of millions of workers who do not enjoy union protection and it would force corporations to pay greater taxes through payroll. And if larger corporations balk and threaten to pull up stakes from certain states where they were busily wiping out competition, I say good riddance. Better to have thirty small companies in a particular market competing for consumer's dollars and for labor rather than three large corporations (or even fewer) creating anti-consumer and anti-labor cartels.

What say you all?

EDIT: I would add the proviso that any small corporation with a majority of shares owned by a large-cap corporation must pay the greater wage that would have applied to the larger corporation. That way a company like Amazon or Wal-Mart could not simply form hundreds of tiny corporations whose stock is placed in trust in holding companies or buy up small local chains in order to keep wages depressed.

Worth a try, but I wonder (1) what the actual amount of money raised would be and (2) what would be the unintended consequences of having 3 wage tiers in the same block.

 

[Antiwar]

Big corporations have taken over. Raygun and other Republicans screwed the country over. They deregulated using their small government ideology, which neutered the government. Raygun also hurt unions. Plus they passed shit like Citizens United, and appointed right-libertarian judges. Most Democrats aren't much better.

The Hidden History of Monopolies – Rising Up with Sonali

FEATURING THOM HARTMANN – The American economy today is utterly dominated by massive companies that have monopolies on what we eat, wear, drive, bank, shop, and consume. When recessions hit in the modern era, our tax dollars bail out corporations that we are told are “too-big-to-fail.” My next guest

www.risingupwithsonali.com

 

[Felis Leo]

Worth a try, but I wonder (1) what the actual amount of money raised would be and (2) what would be the unintended consequences of having 3 wage tiers in the same block.

I imagine the immediate consequence will be a rush by larger corporations towards as much automation and outsourcing...which they were all going towards anyway. Which is a reason that this should definitely be paired with vigorous anti-trust action.

 

[Elmo]

Recently, Jeff Bezos said he supported an increase in corporate taxes to 28%, which to many might seem like paying his fair share to benefit the commonwealth...until one realizes that Amazon pays nothing in corporate taxes. Corporate tax rates could go back to 90% and Bezos would not pay a penny in them, and it would only damage what little competition he has.

So these monopolistic corporations, especially those like McDonalds, Wal-Mart, Amazon, Comcast and their ilk, get away with paying their workers starvation wages, and passing on the savings not to the consumer (it is to laugh), but rather, the passing them on to the shareholders of corporate stock. Thus, too many corporations pays little to nothing in corporate taxes, and they pay little to nothing in payroll taxes because so many employees work close to the poverty level. Thus, as many

If our country is letting Unions go the way of the Dodo bird leaving employees unable to collectively bargain for higher wages or better working conditions (if indeed they are even considered "employees" and not independent contractors), and the Federal government is increasingly hesitant to pursue anti-monopoly actions against these dominant firms who crush all competition and keep the price of labor low, we need a better solution that forces these companies to pay their fair share both to employees and to the commonwealth through payroll taxes. I therefore have a modest proposal that would not require some radical rewriting of the tax code that corporations would just skirt around anyway through a variety of loopholes.

For all small private companies and small-cap companies with a market capitalization of less than $2 billion, keep the state/federal minimum wage where it is wherever the company has operations.

For mid-cap corporations, i.e., those with a market capitalization between $2 billion and 10 billion, they shall be required to pay their employees no less than the minimum wage plus an additional 50%. Thus, if the minimum wage for one state in which the corporation's branch is $10.00, the least the company can pay their employees is $15.00 per hour. And this applies to contract workers and independent contractors as well.

And for large-cap corporations, i.e., those with a market capitalization of $10 billion or more, they shall be required to pay their employees and independent contractors no less than twice the present minimum wage for the state in which any branch of the corporation. Therefore, if the minimum wage of one state in which the corporation is located is $10.00, the corporation must pay its employees and independent contractors working in that state no less than $20.00 per hour.

This would increase the livelihoods of millions of workers who do not enjoy union protection and it would force corporations to pay greater taxes through payroll. And if larger corporations balk and threaten to pull up stakes from certain states where they were busily wiping out competition, I say good riddance. Better to have thirty small companies in a particular market competing for consumer's dollars and for labor rather than three large corporations (or even fewer) creating anti-consumer and anti-labor cartels.

What say you all?

EDIT: I would add the proviso that any small corporation with a majority of shares owned by a large-cap corporation must pay the greater wage that would have applied to the larger corporation. That way a company like Amazon or Wal-Mart could not simply form hundreds of tiny corporations whose stock is placed in trust in holding companies or buy up small local chains in order to keep wages depressed.

I like it, but I can imagine some unintended consequences, at least in the short term. Imagine you're working for the local mom-and-pop store for $10 an hour. Then this change happens, and suddenly you can make $20 an hour doing the same job at the megacorp. That's a lot of incentive to quit, even if you like your current boss. People who have the megacorp job could be desperate to keep it, so they might be more willing to put up with more subtle abuses from the bosses. Probably solvable problems, but someone in authority would need to be watching and regulating the situation carefully.

 

[Bored in the USA]

They can afford it. So do it.

 

[mrjurrs]

I imagine the immediate consequence will be a rush by larger corporations towards as much automation and outsourcing...which they were all going towards anyway. Which is a reason that this should definitely be paired with vigorous anti-trust action.

I think we'd be fools to try to slow automation. It's coming for all jobs in some degree. I think we need to think of revenue sharing on all economic activity that doesn't involve people. For example...Charge a 1 cent per share transaction fee for all stock transactions initiated by a logarithm. 2021 avg trading volume 14.7 billion shares per day, 60-73% total volume traded automatically, multi millions of dollars extracted from the process on a daily basis to help pay people for the jobs that aren't available on a carbon-tax model. Divide the total revenue derived and divide it equally between all persons in America each month.

 

[Juks]

Recently, Jeff Bezos said he supported an increase in corporate taxes to 28%, which to many might seem like paying his fair share to benefit the commonwealth...until one realizes that Amazon pays nothing in corporate taxes. Corporate tax rates could go back to 90% and Bezos would not pay a penny in them, and it would only damage what little competition he has.

So these monopolistic corporations, especially those like McDonalds, Wal-Mart, Amazon, Comcast and their ilk, get away with paying their workers starvation wages, and passing on the savings not to the consumer (it is to laugh), but rather, the passing them on to the shareholders of corporate stock. Thus, too many corporations pays little to nothing in corporate taxes, and they pay little to nothing in payroll taxes because so many employees work close to the poverty level. Thus, as many

If our country is letting Unions go the way of the Dodo bird leaving employees unable to collectively bargain for higher wages or better working conditions (if indeed they are even considered "employees" and not independent contractors), and the Federal government is increasingly hesitant to pursue anti-monopoly actions against these dominant firms who crush all competition and keep the price of labor low, we need a better solution that forces these companies to pay their fair share both to employees and to the commonwealth through payroll taxes. I therefore have a modest proposal that would not require some radical rewriting of the tax code that corporations would just skirt around anyway through a variety of loopholes.

For all small private companies and small-cap companies with a market capitalization of less than $2 billion, keep the state/federal minimum wage where it is wherever the company has operations.

For mid-cap corporations, i.e., those with a market capitalization between $2 billion and 10 billion, they shall be required to pay their employees no less than the minimum wage plus an additional 50%. Thus, if the minimum wage for one state in which the corporation's branch is $10.00, the least the company can pay their employees is $15.00 per hour. And this applies to contract workers and independent contractors as well.

And for large-cap corporations, i.e., those with a market capitalization of $10 billion or more, they shall be required to pay their employees and independent contractors no less than twice the present minimum wage for the state in which any branch of the corporation. Therefore, if the minimum wage of one state in which the corporation is located is $10.00, the corporation must pay its employees and independent contractors working in that state no less than $20.00 per hour.

This would increase the livelihoods of millions of workers who do not enjoy union protection and it would force corporations to pay greater taxes through payroll. And if larger corporations balk and threaten to pull up stakes from certain states where they were busily wiping out competition, I say good riddance. Better to have thirty small companies in a particular market competing for consumer's dollars and for labor rather than three large corporations (or even fewer) creating anti-consumer and anti-labor cartels.

What say you all?

EDIT: I would add the proviso that any small corporation with a majority of shares owned by a large-cap corporation must pay the greater wage that would have applied to the larger corporation. That way a company like Amazon or Wal-Mart could not simply form hundreds of tiny corporations whose stock is placed in trust in holding companies or buy up small local chains in order to keep wages depressed.

,
Just to let you know, big companies that has their headquaters in Sweden doesn't pay corporate tax either. I believe it is the same in most countries that has big companies.


This is why Biden wants to have(and tries to negosiate with the EU and the UK) a global minimum level for corporate tax and they have put in a proposal that companies pay taxes in the country in which they operate to try and make EU and the UK to come aboard and off course to avoid that the companies move outside the EU, UK and US, but still has the benefits off our markets. It is a complicated question and I don't believe he will succeed.

 

[nvflash]

A tiered minimum wage seems to me to be a terrible idea. The minimum wage should be a living wage, the base amount you have to pay anyone for their time.

Amazon, Wal-mart, and other large corporations already pay above the current minimum wage, tho it's not a living wage, because they would not be able to compete for workers they need if they only paid the current minimum wage.

Raising the current minimum wage to a living wage, should put upward pressure on the amount these large and very profitable corporations have to pay to compete for the workers they need, while still setting a base wage for employees of less profitable enterprises.

 

[newpublius]

So these monopolistic corporations, especially those like McDonalds, Wal-Mart, Amazon, Comcast and their ilk, get away with paying their workers starvation wages, and passing on the savings not to the consumer (it is to laugh), but rather, the passing them on to the shareholders of corporate stock.

McDonalds in many instances is a franchise model of course. Nevertheless, you realize that for most Fortune 500 companies the net margin, on average is 14%. Retailers like Walmart and Amazon are actually much, much lower actually. Fact is when you spend a $1 at either Walmart or Amazon more of that dollar will be tax, whether its sales tax, property tax on facilities, the employer share of social security, etc, and we can completely forget about corporate income tax altogetherm than profit attributable to the shareholders.

$WMT net margin is less than 3%
$AMZN is now 5.75%

Walmart and Amazon have nominally large profits, but they are low margin businesses.