Minimum wage a tax on employers, says economist

Original article by David Marin-Guzman
The Australian Financial Review – Page: 4 : 17-May-18

The University of Melbourne’s Professor Roger Wilkins says it is "absurd" that an increase in the minimum wage could see people on low incomes move into a higher tax bracket. It is estimated that the marginal tax rate of about 193,000 workers will rise from 19 per cent to 32.5 per cent if the minimum wage is increased by 2.1 per cent. The minimum wage was increased by 3.3 per cent in 2017, and the Australian Industry Group has advocated a 1.8 per cent rise in 2018. The Fair Work Commission is expected to announce its decision shortly.

CORPORATES
UNIVERSITY OF MELBOURNE, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN LABOR PARTY, NATIONAL PRESS CLUB (AUSTRALIA)

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