Minimum wage increase

[GilpinGuy]

Stupid question. Do minimum wage earners actually pay income, payroll, SS, etc. taxes? After they get their "tax return" my guess is no. But my cynical mind thinks, "Higher minimum wage means more taxes collected, and lefties like to collect taxes to waste on stupid shit, so....higher minimum wage it is."

[TheGrey]

Stupid question. Do minimum wage earners actually pay income, payroll, SS, etc. taxes? After they get their "tax return" my guess is no. But my cynical mind thinks, "Higher minimum wage means more taxes collected, and lefties like to collect taxes to waste on stupid shit, so....higher minimum wage it is."

Actually, yes. They pay income taxes, and it's not always recoverd at tax time.

[Circuits]

Actually, yes. They pay income taxes, and it's not always recoverd at tax time.

Most minimum wage workers are eligible for no withholding (other than FICA/SSI), so do not necessarily "pay" any income tax. Those who do have withholding may not file for their refunds, though, which effectively results in them being taxed, I guess.

Don't forget illegals and scammers collecting benefits but still working "under the table" - no taxes or withholding on the illegal income, and little or none taken out of the fraudulently-claimed benefits.

Really, anyone working for minimum wage is a chump, because working regularly above the table at even minimum wage makes one no longer eligible for many FSA "benefits".

[Gman]

Answer:Thus, only about 50% of the country pays any taxes at all although a higher percentage had taxes originally deducted.

...and everyone should have some skin in the game.

[GilpinGuy]

Answer:
SS, Medicare yes, not refundable and deducted at flat percentages. Everything else: generally they don't pay (deducted sometimes, but refunded and then some). With things like Earned Income Credit +refunds the government gives them substantially more than they ever paid in. Thus, only about 50% of the country pays any taxes at all although a higher percentage had taxes originally deducted.

Yeah, I knew the 50% pay no taxes bit, I just thought federal, and they actually get paid to be "low income". SS and Medicare...hmmmm.

How much interest, if any, is earned on the taxes withheld throughout the year, then finally returned?

[roberth]

Yeah, I knew the 50% pay no taxes bit, I just thought federal, and they actually get paid to be "low income". SS and Medicare...hmmmm.

How much interest, if any, is earned on the taxes withheld throughout the year, then finally returned?

Zero, that is one of the reasons I try to pay a little. My money is better off in my hands than the government's.