$70K for everyone? (Score 1)

This will be an interesting sociological experiment. Maybe he should have consulted a financial accountant before announcing. The math certainly doesn't add up. When he gets to his utopia, assuming that his fixed costs, number of employees and revenue remain the same, his employment costs will increase by at least $2.8 M per year. His business will then be losing $600K or more every year instead of making a $2.2M profit. That can't sustain for very long. Maybe he's counting on getting a subsidy from his fellow taxpayers via the federal government.

Current total employment cost (less benefits) 120*$48K*1.0765 (SS & Medicare)*1.0207 (unemployment ins.)=$6.21M. Future total employment cost (less benefits) 120*$70K*1.0765 (SS & Medicare)*1.0207 (unemployment ins.)=$9.06M