Originally posted by RT and his SE:
$5.45 x 40 hours a week = $218 x 52 weeks = $11336 - 23% tax = $8728.72



I will question the suggestion that a minumum wage earner only takes 77% of earned income home.

Using Minnesota taxation, which is one of the higher income tax states.

11336 - 7800 (exemptions) = $3536 Taxable income. Fed Tax = $353. Minnesota State Tax = $190 Total income tax = $543.

Payroll Taxes are 7.65% of gross. 11336 x 0.0765 = 867.20

867.20 + 543 = 1410.20 or 12.44% of gross.

11336 - 1410.20 = 9925.80.

I will be the first to admit this is a very small income to live on, but it is above the poverty line for a single person. Other taxes are assumed to be paid as part of the income.

The minimum wage is not designed, and should not be designed for someone to raise a family on working 40 hours a week. This belief that all anyone should be expected to work is 40 hours is all nice platitudes, but there is no right to it.

Brad "Diva": 2004 Mazda 6s 5-door, Volcanic Red Rex: 1988 Mazda RX-7 Vert, Harbor Blue.