One of the effects of raising minimum wage is it appears not to cover the cost of living. For example, a person making $7.25 per hour with no overtime that is paid bi weekly will receive gross wages of $580 per paycheck. If you count the social security and Medicare taxes taken out ($35.96 and $8.41, respectively), adjusted wages fall to $535.63 and that’s not including deductions for state, federal or local taxes.

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