Expansion of the EITC Program

The Issue

The minimum wage has always been one of the most controversial topics in modern American politics. One side feels that the minimum wage should be raised to reduce the amount of people living in poverty, while the other side feels that raising the minimum wage will actually hurt the people working under the minimum wage. This is such an important topic in our society, and I wanted to find the best way to approach this challenge and even appease both sides of the political spectrum if possible. To get a basic overview of the effects of the minimum wage I read Minimum Wages by David Neumark and William L. Wascher. In my opinion, the best way to do this is through keeping the minimum wage where it is at, but greatly expanding the “Earned Income Tax Credit” program or EITC for short. According to Time, “The EITC provides a tax credit for every dollar earned by a worker in a low-income household, and it is refundable—so workers with no tax liability get a check from the government”(Holzer). This is a very viable solution because it incentivises work while at the same time lifting extremely poor individuals and families out of poverty. I see this as the most effective solution to ur problem with the minimum wage because the plans of both liberals and conservatives alike ignore the main concerns of the other side. For example according to week, ““President Obama wants to raise the federal minimum wage from $7.25 to $10.10 — a 39 percent increase. But cash that goes into one pocket must come out of another. Business owners with lots of minimum-wage employees would undeniably see their costs skyrocket. Maybe they'll compensate by raising the prices at the fast-food restaurant they own, which would hurt many poor and middle-class families who would ultimately pay higher prices at these restaurants”. (Hansen). This means raising the minimum wage would potentially put more people into poverty. However according to Pro-con, “The Economic Policy Institute determined that by increasing the minimum wage to $10.10, more than 1.7 million Americans would no longer be dependent on government assistance programs”(“Minimum Wage”). This makes me believe that the best solution to our country's divide over the minimum wage is through the EITC because of it’s rare bipartisan support and the benefits that it brings to lower class citizens along with our economy as a whole by promoting the employment of the poor and giving them more power in our economy. However according to Time, “If there is one drawback to the EITC, it is the problem with any publicly-funded program: Taxpayers must foot the bill. Indeed, this probably explains why minimum wage increases are very popular with voters, even in red states, since it doesn’t cost them anything to give workers a raise—just employers”(Holzer). This shows that voters are mostly concerned about the implications that minimum wage laws will have on their taxes, and that may make an expansion of this program very hard. In conclusion the best way to combat poverty in America in regards to the minimum wage is gradual increases with a larger implementation of the EITC.

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The Issue

The minimum wage has always been one of the most controversial topics in modern American politics. One side feels that the minimum wage should be raised to reduce the amount of people living in poverty, while the other side feels that raising the minimum wage will actually hurt the people working under the minimum wage. This is such an important topic in our society, and I wanted to find the best way to approach this challenge and even appease both sides of the political spectrum if possible. To get a basic overview of the effects of the minimum wage I read Minimum Wages by David Neumark and William L. Wascher. In my opinion, the best way to do this is through keeping the minimum wage where it is at, but greatly expanding the “Earned Income Tax Credit” program or EITC for short. According to Time, “The EITC provides a tax credit for every dollar earned by a worker in a low-income household, and it is refundable—so workers with no tax liability get a check from the government”(Holzer). This is a very viable solution because it incentivises work while at the same time lifting extremely poor individuals and families out of poverty. I see this as the most effective solution to ur problem with the minimum wage because the plans of both liberals and conservatives alike ignore the main concerns of the other side. For example according to week, ““President Obama wants to raise the federal minimum wage from $7.25 to $10.10 — a 39 percent increase. But cash that goes into one pocket must come out of another. Business owners with lots of minimum-wage employees would undeniably see their costs skyrocket. Maybe they'll compensate by raising the prices at the fast-food restaurant they own, which would hurt many poor and middle-class families who would ultimately pay higher prices at these restaurants”. (Hansen). This means raising the minimum wage would potentially put more people into poverty. However according to Pro-con, “The Economic Policy Institute determined that by increasing the minimum wage to $10.10, more than 1.7 million Americans would no longer be dependent on government assistance programs”(“Minimum Wage”). This makes me believe that the best solution to our country's divide over the minimum wage is through the EITC because of it’s rare bipartisan support and the benefits that it brings to lower class citizens along with our economy as a whole by promoting the employment of the poor and giving them more power in our economy. However according to Time, “If there is one drawback to the EITC, it is the problem with any publicly-funded program: Taxpayers must foot the bill. Indeed, this probably explains why minimum wage increases are very popular with voters, even in red states, since it doesn’t cost them anything to give workers a raise—just employers”(Holzer). This shows that voters are mostly concerned about the implications that minimum wage laws will have on their taxes, and that may make an expansion of this program very hard. In conclusion the best way to combat poverty in America in regards to the minimum wage is gradual increases with a larger implementation of the EITC.

The Decision Makers

Julie Morrison
Illinois State Senate - District 29

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Petition created on May 14, 2018