Government programs need to be adjusted
Feb. 18, 2013 at 6:02 p.m.
Updated Feb. 17, 2013 at 8:18 p.m.
Editor, the Advocate:
When the Democrats back in 1938 wrote the minimum wage law, they did not write into the legislation any provision for adjusting for inflation. I think we kindhearted souls should rectify that situation, after all, what cost $1 in 1938 would cost $16.09 today. The president wants to adjust it to $9 per hour. I say we should adjust it for all those years of inflation!
The original minimum wage signed into law June 25, 1938, established a minimum wage of 25 cents per hour. Adjusted for inflation into today's dollars, the two-bits per hour of 1938 is equivalent to $4.02 today. I think we should immediately adjust today's minimum wage of $7.25 per hour to $4.02 per hour.
Something else that has never been adjusted for inflation is the amount of Social Security benefits subject to federal taxes.
You will have to pay federal taxes on your Social Security benefits if you file a federal tax return as an individual and your total income is more than $25,000. If you file a joint return, you will have to pay taxes if you and your spouse have a total income of more than $32,000.
This deduction amount was set in 1983 and has never been adjusted for inflation.
What cost $32,000 in 1983 would cost $72,616.29 in 2012.
Roy Mark, Victoria