Pharos-Tribune

Letters

March 24, 2013

PUBLIC FORUM: Raising minimum wage good idea?

— Our government keeps raising the minimum wage. Is this a good idea? Is it a deception to the people? People tend to think “I make more money.” Do you? Let’s look at this.

Yes, you make more money on the hour. But the increase may put you in a higher tax bracket. So the government gave themselves a raise on tax revenue.

When the minimum wage increases, so will the cost of living. For example, our fast food places have to increase the cost of their product to cover the cost of labor, as well as the places they receive their products from. We can’t forget where our products come from will have to increase that cost also. So here we have an increase twice. One is the cost of producing the product, second is the retail cost to you. This in return will increase cost of many other areas.

The question is what would be a great avenue to help the people and the businesses the same? Why not mandate a percentage raise for time of service? Would this be a better idea? Example: for every year a person puts into the company, they receive a certain percent increase. Reason is that the fast turnover businesses will not hurt from the increase. This would inspire the employee to stay with the business longer, which would lower the cost of the business on training replacements. And the employee would be of more use for the company by learning more on the job.

Why can’t the government mandate Section 125 of the United States Code on the businesses?

What is Section 125? Many people and businesses are not aware of Section 125, or even now what a Section 125 is.

Section 125 is for insurance premiums. The way it works is the employer takes out the premiums on the gross pay instead of the net pay. This in return will give the employees more take home pay. The downfall would be less tax revenue for the government.

This is a good way to provide health care benefits to your business employees is with the establishment of a Section 125 plan. Also known as a cafeteria plans, flexible spending plans or similar names depending on the specific plan’s purpose. The plans are named after Title 26, Section 125 of the United States Code where “cafeteria plans” are specifically excluded from the calculation of gross income for federal income tax purposes.

Not only does a Section 125 plan allow an employer to provide health care benefits, a full cafeteria plan can be used to provide dependent care benefits and spending accounts for employees to decide what they want in their benefits plan.

What the insurance companies call this is “Found Money” because subtracting the insurance premiums from the gross income would be less income taxes taken out of our checks. This would give us more “spending money” for the cost of raising prices an not effect our businesses.

Rick Gibbs

Logansport

 

For more on this story and other local news, subscribe to The Pharos-Tribune eEdition, or our print edition

1
Text Only | Photo Reprints
Letters
  • PUBLIC FORUM: Are businesses missing out on interns? Are businesses missingout on interns?Admittedly we’re a little biased, but the Indiana INTERNnet and Indiana Chamber teams believe your company is not operating at full capacity if you aren’t hosting an internship program. Missing out on increased pr

    July 29, 2014

  • PUBLIC FORUM: Letters for Sunday, July 27, 2014 Residents want to see development pactI’ve been attending the Utility Service Board monthly meetings for the past several months to better understand the ongoing plans for first Pyrolyzer and now a purchase agreement with Total Concept Solutions.Thre

    July 27, 2014

  • PUBLIC FORUM: Addressing the morality of an issueAs superintendent for the Logansport Community School Corp., I feel it appropriate to respond to the July 17 article in the Pharos-Tribune regarding the dismissal of child seduction charges against former Logansport

    July 20, 2014

  • PUBLIC FORUM: Letters for Sunday, July 13, 2014 Learn about ‘fair share’in property taxesWhen the Legislature’s Blue Ribbon Commission begins its look at the state’s taxes this summer, invariably there will be talk of business needing to pay its “fair share.” That’s certainly true, but what is fai

    July 13, 2014

  • PUBLIC FORUM: A church response to same-sex marriage A church responseto same-sex marriageThe dignity of the human person, rooted in his or her creation in the image and likeness of God, is a fundamental principle of Catholic social teaching. The Church upholds the dignity of every human person, includ

    July 8, 2014

  • PUBLIC FORUM: Letters for Sunday, July 6, 2014 Man is a husbandas well as a heroI met my husband, Ron Smith, through mutual friends in March 1995. We married in August of the same year and have been inseparable since. Together we have three sons, Jimmy 24, Brock, 13, and Tayt, 7. I am so proud of

    July 6, 2014

  • PUBLIC FORUM: Democracy is not an easy process Democracy is notan easy processGenerally speaking, I think Americans love themselves far more than they love their country. I see the stars and stripes displayed more often than I used to, but that’s only because the rules have changed. It was too mu

    July 3, 2014

  • PUBLIC FORUM: Thanks for helping with open house Thanks for helpingwith open houseWe would like to thank the Logansport community and surrounding communities for attending our Logansport Airport Open House. The day started out looking like a complete wipe-out and in the end, it was the most success

    July 2, 2014

  • PUBLIC FORUM: Option of transfer not open to county Option of transfernot open to countyMemorial Home was built during the Civil War by a New York banker. He had the home constructed as a copy of one on the Hudson River, called “the Castle.” The home was built to please his wife who was reluctant to c

    July 1, 2014

  • PUBLIC FORUM: Letters from Sunday, June 22, 2014 City officials needto put it out on the tableThe city council issued a Request For Proposals to generate electricity with trash as fuel: it awarded the contract to Pyrolyzer LLC. Pyrolyzer executive Canterbury recently told the Utility Services Board

    June 22, 2014

Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Poll

Should grocery and convenience stores be allowed to sell cold beer?

Yes
No
Unsure
     View Results
Featured Ads
AP Video
Raw: Japanese Soldiers Storm Beach in Exercises Raw: Weapons Fire Hits UN School in Gaza Raw: Rocket Launches Into Space With Cargo Ship Broken Water Main Floods UCLA Two Women Narrowly Avoid Being Hit by Train In Virginia, the Rise of a New Space Coast New Sanctions on Key Sectors of Russian Economy Crayola Announces Family Attraction in Orlando US Ready to Slap New Sanctions on Russia Kerry: Not Worried About Israeli Criticism Boater Rescued From Edge of Kentucky Dam Girl Struck by Plane on Florida Beach Dies Rodents Rampant in Gardens Around Louvre House to Vote on Slimmed-down Bill for Border Looming Demand Could Undercut Flight Safety Raw: 2 Shells Hit Fuel Tank at Gaza Power Plant Raw: Massive Explosions From Airstrikes in Gaza Giant Ketchup Bottle Water Tower Up for Sale Easier Nuclear Construction Promises Fall Short Kerry: Humanitarian Cease-fire Efforts Continue
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.