Effects of minimum wage on the poor and on society?

[Rajoo]

I have been in Portland, OR since this Sunday and there is no sales tax here, but there is state income tax. Going to WA this afternoon and will be there for a few days, there is no state income tax but they do pay sales tax. Now in California, we pay both state and sales taxes.

So the government of CA edicts a rise in minimum wage, costs will proportionately go up (rent is at some point more of a supply issue) and in the end, people will wind up spending (or having to due to increase in prices) the additional income. So who gains? The government of course, since they get to tax every penny we earn one way or the other. They get a windfall for doing nothing.

So CA wants to increase the minimum wage, great. Have them reduce the sales tax proportionately. Will it happen? Never.