When the NDP raised minimum wage in 2015, they did so with the intent to reduce poverty. Yet, group after group, after group says that raising minimum wage does not reduce poverty. I want to actually help the impoverished. We help in a way that actually puts more money in people’s pockets instead of putting them out of work. This can be done by simply cutting taxes
The NDP raised minimum wage without an economic impact study on Alberta’s economy to prove it will help. We saw business cut hours, staffing numbers, benefits, and even charitable donations were cut back. All because the NDP did not trust the Free Market. Instead they used government policy to interfere with the Free Market and upset the delicate balance.
After the first raise, Alberta minimum wage earners had the highest take home earnings of any minimum wage earner in Canada. The main reason to increase it further, would be so the NDP government would receive a higher tax revenue from those making minimum wage.
In Ontario, they raised the minimum wage from $11.60 to $14 and increased government revenue (after job loss) by $218,050,000.00 for one year! Just think of the increased revenue the NDP received and spent over their four year term. This is tax grab disguised as helping the poor that actually destroys jobs and hurts businesses. While the minimum wage won’t be rolled back and jobs recovered, we can at least improve on the broken system the NDP have left in their wake.
The policy that the NDP should have implemented (if they actually wanted to help the poor) and the policy I believe the UCP should adopt is to increase the basic personal tax exemption.
Increasing the basic personal tax exemption would:
- Help the poor
- Lessen the burden of social support programs
- Cut taxes
- Put more money in your pocket
- Keep stability in the Free Market
If you again refer to the graph above you will see that for every hour worked the red part marks how much goes towards taxes in each province. That blue portion is the basic personal tax exemption. Now that the minimum wage has increased, each person pays more an hour in taxes than they did pre-increase which negates some of the raise. We should reduce the amount of taxes owed by those who make the least through increasing the basic personal tax exemption.
This is the second economic policy I would like to see the UCP adopt. In the end, it does not matter what I believe is best for the province or the party, it matters what you believe is best. Buy a membership in the UCP and vote for the polices you want to see adopted. You are in control. Vote accordingly!