Published CommPro.biz 2014.03.04

Walmart And The Tax Creators
 

Are you sure you are getting a bargain when you shop at Walmart? Are you sure that your Big Mac doesn’t cost more than the price on the menu board? Are you sure that the upfront low prices you pay wherever minimum wage jobs are part of the picture are all you pay? Don’t be too sure.

If you pay taxes of any sort, you probably help pay for food stamps. You definitely help pay for Medicaid and subsidized housing; even welfare might soak up some of your tax dollars on their way to help the working poor. So when, the working poor are paid minimum wage, you help make up the rest of their income. They are on your payroll. So even if you don’t shop at Walmart or eat fast food, you are still not only picking up part of their workers’ paychecks, you are cutting their customers’ bill.

The largest recipient of welfare in America is Walmart. It’s their business model, along with reported bribery, to smooth out their growth. Walmart is America’s largest employer, so you are not just subsidizing some mom and pop outfit; you are subsidizing a huge enterprise controlled by the Walton family. They own a little over half the stock in Walmart, so whatever happens at Walmart is under the full control of these unbelievably rich folks. How rich are they? The Walton family riches equals the total riches of everybody in the bottom forty percent of Americans.

The first argument against raising the minimum wage is that it will cost jobs; that businesses paying minimum wages will lay people off. That assumes that these organizations have too many employees, or that they don’t want to give their customers quick efficient service. Or that they will have to raise their prices so much that they won’t have as many customers. Of course that falls apart if the competition has to raise their wages and prices too.

Then there’s the teen argument. That most of these jobs are filled by teens who are learning how to work and therefore should be paid a bit less. If that was ever true, it isn’t true today. Yes there are teens in minimum wage jobs, but the vast majority of those at this pay level are adults, most trying to support a family. So how about the teens? Perhaps a case could be made for a two tier minimum wage that would allow for a lower pay scale for teens during their first few months on the job until they become as productive as the adults.

In the end all the arguments against a decent wage level fall apart. And by the way, Walmart doesn’t skimp on payroll to offer lower prices; they do it to make the Waltons richer. In the end that’s what it’s all about, save on payroll, keep the extra bucks and let the taxpayers make up the difference with food stamps, Medicaid, and anything else it takes to help your workers scrape by.

"Am I wrong?"--"Am I crazy?"

"What do you think?"--"Do you agree?"