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Raising Wages for Low-Wage Workers, High-Tech Immigration, and Googling Tax Subsidies
Matt Singer on January 11, 2007 - 9:52am
Some opponents of the minimum wage argue that Earned Income Tax Credit is a complete substitute. However, as a new Urban Institute report emphasizes, "raising the EITC enough to offset the loss in purchasing power of the minimum wage could prove costly," and the EITC system would have to be expanded to a far larger portion of working families to make up for the lost value of the minimum wage.
On the other hand, a new Brookings Institution report highlights a range of other policies that are important complements to the minimum wage for low-wage workers, including policies that crack-down on predatory lenders and other high-cost services preying on poor communities, providing better information to low-income communities so they can find cheaper products, and encouraging investment by mainstream companies in those communities.
Over the last decade, one in four high-technology startups for local economies have had a foreign-born founder, finds a new report by researchers at the University of California-Berkeley and Duke University. "What is clear," writes the authors, "is that immigrants have become a significant driving force in the creation of new businesses and intellectual property in the U.S. ”” and that their contributions have increased over the past decade."
With a market capitalization of $150 billion, you wouldn't think that Google would be receiving government handouts -- but as Good Jobs First finds, North Carolina and South Carolina have found themselves in a multi-million dollar bidding war to offer Google tax subsidies to locate a new facility.
Unfortunately such giveaways are chronic in most states; as a new report by the Iowa Fiscal Partnership found at looking at subsidies in that state, Iowa business receive about $155 million a year in tax benefits for economic development, but the state imposes little in the way of accountability -- so taxpayers don't even know if they are getting value for their money.