Editor's note: Ontario announced today it will raise minimum wage to $11.25 per hour effective October 1
Dear Editor:
In a previous life I worked for Canadian John's Manville in Port Union Ontario. The plant was unionized and whenever there was a new contract the first line supervisors got their salary adjusted as well. Their pay was adjusted to 25% more than the average of the top 5 wages of people who they supervised. Obviously the first line supervisors were secretly cheering for the union and I am sure my salary as well was somehow affected although not as directly! This same type of approach could be used to alleviate income disparity in Canada.
Here is one scenario. Let's say that the minimum wage in Ontario is at the present rate of $11.00 per hour. That translates to roughly $22,000 per year. If we multiply $22,000 by 2, 5, 10, 20, 40, and 80 we get $44,000, $110,000, $220,000, $440,000, $880,000 and $1,760,000. Now let's suppose we base our income tax brackets based on these 6 numbers. I would suggest that a possible income bracket for income earned over $1,760,000 should be 90%. and from $44,000- $110,000 be maybe 10%. These income tax percentages and minimum wage multipliers of course would have to be developed to assure a balanced budget. The next step would be to tie support for the unemployed to minimum wage levels. After that the next step would be to ensure that all of our children are put on a level playing field with respect to their future prospects. A fair tax system must ensure that all children are lifted out of poverty. This last objective is just as important as, and arguably more important than providing health care for all. Many studies have shown that children raised in poverty on average do not do well as in adulthood, comparatively speaking.
The upshot of a system such as this is that high income earners will also get a benefit when the minimum wage increases. They would also see a benefit in having more people employed. There would be developed a greater sense of community which is so important especially in a country as diverse geographically and culturally as is Canada.
The totally, totally laughable thing about the above is that I would be willing to bet that many minimum wage workers and others would object to people having to pay 90% on their income in excess of $1,760,000!
Bill Moses
Owen Sound
