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Higher minimum wage not the answer to poverty; Alberta increases protection for foreign workers; Feds pledge $1-billion for ailing industries
|Canadian HR Reporter|Last Updated: 01/24/2008

Higher minimum wage not the answer to poverty


— Raising income-tax exemptions to remove people at the bottom of the income ladder entirely from the tax rolls is a more effective way to fight poverty than increasing the minimum wage, according to a report from the Frontier Centre for Public Policy. The report states that if Manitoba and Saskatchewan were to raise their provincial income-tax exemption from $9,600 to $15,600, the level used in Alberta, it would generate the same income as setting the minimum wage at $9.20 an hour. For Albertans, if the federal tax exemption was also raised to $15,600, it would increase the incomes of the working poor by 15 per cent, according to the report.