Wednesday, April 19, 2006

Meaning of minimum wage

I was just looking at the cost of gasoline.

Minimum wage of $5.15 per hour means that after FICA Tax is deducted, a worker takes home $4.74 per hour. If gasoline costs $3.00 per gallon, then it takes 3.16 hours of work to buy 5 gallons of gas for $15.

At 15 miles per gallon, driving 75 miles to and from work will cost 40% of what your take-home pay. That limits a minimum wage worker to a job 38 miles away, assuming the car is paid for, does not require repairs and he or she does not buy insurance.

Workers deserve better pay for their time. They should at least earn enough to pay to get to work and back.

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