(Mahmoud Yousef, 2015) provides arguments in the scholarly article that the minimum wage is an important instrument for governments to generate taxes. The higher minimum wage makes work more attractive which can help to motivate people who rely on government subsidies to look for jobs. The sufficient minimum wage reduces poverty and helps maintain an acceptable living level. To support the positive impact of the higher minimum wage the author compares two hypothetical Canadian citizens with one dollar difference in personal earnings. One employee makes $10.25 per hour and another one makes $11.25 per hour. Askari demonstrates how one dollar difference in the minimum wage generates significant increase in tax revenues during working life.
