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Economics Discuss Warren Buffett sees smarter fix for inequality than raising the minimum wage at the Political Forums; https://finance.yahoo.com/news/warre...122322575.html “I may wish to have all jobs pay at least $15 an hour,” Buffett wrote. "But that minimum would ...

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Old 04-25-2016, 10:13 AM
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Default Warren Buffett sees smarter fix for inequality than raising the minimum wage

https://finance.yahoo.com/news/warre...122322575.html

Quote:
“I may wish to have all jobs pay at least $15 an hour,” Buffett wrote. "But that minimum would almost certainly reduce employment in a major way, crushing many workers possessing only basic skills."
Quote:
Buffett instead has promoted what he sees as a better answer: an expansion of the Earned Income Tax Credit (EITC), which currently goes to millions of low-income workers.

“Payments to eligible workers diminish as their earnings increase," he explained. "But there is no disincentive effect: A gain in wages always produces a gain in overall income. The process is simple: You file a tax return, and the government sends you a check."

For Buffett, the EITC is a better solution because it's about more than just money.

"In essence, the EITC rewards work and provides an incentive for workers to improve their skills," he continued. "Equally important, it does not distort market forces, thereby maximizing employment.”

Buffett added that the plan needs improvement, including reducing fraud, shifting payments to monthly installments from annual, and increasing dollar amounts for those earning the least.
not so sure i'm on board with buffett's idea but i suppose there is something better than pricing small businesses out of the market by forcing higher labor rates on them.
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