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$4 in 1970 has the same purchasing power as $26.84 does in 2020. You said a bit over $4 so let’s round that up to $30/hour.

Real numbers. In 74, I worked part time in a bowling ally: $1.75/hr. Minimum was $1.60.

The BLS inflation calculator says my princely $1.75 in the winter gloom of early 74 was worth $9.78 in Trumpbux. Minimum wage in Michigan now is $9.45. Federal minimum wage is $7.25.

$1.75/hr, if I worked 40 hrs, would gross $3640/yr. Standard deduction then was $1300 and the personal exemption was $750. So net taxable would be $1590, which puts the marginal dollar of income in the 17% bracket.

SS tax was 5.85%

2020 Michigan minimum wage of $9.45. 40 hrs/wk/52 wks/yr $19656. Standard deduction $12,400. Personal exemption $0.00. Taxable income: $7256, putting the marginal dollar of income in the 0% bracket.

SS tax rate 6.2%

2020 Federal minimum wage of $7.25. 40 hrs/wk/52 wks/yr $15080. Taxable income $2680. Marginal rate of 0%.

SS tax rate of 6.2%

Everyone wants to be paid more money. Doesn't matter if they are flipping burgers, or running a criminal enterprise like JPM, they want MORE MONEY!

Everyone happy now?

Steve
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