Minimum Wage
President Obama wants to raise the minimum wage to $9 an hour.  Sherrod Brown wants to raise it to $10.10 an hour.  Currently the federal minimum wage is $7.25.  The minimum wage in Ohio is $7.85 an hour right now.  Sperling’s cost of living calculator describes Akron as well below the cost of living in most of the country.  Sperling estimates costs in Akron to be housing (30%), food (15%), transportation (10%), utilities (6%), health care (7%), clothing and misc (32%).

At $10.10 an hour, working all 260 working days a year for a full 8-hour day, I would earn a total of $21,008.

Using this admittedly rough estimate, if we stick with the starting rental rate, this would mean the following:

Total income = $21,008

Federal taxes = 2,719

State taxes = $630 (@ 3%)

Akron taxes = $420 (@ 2%)

Leaving $17,239

Based on $17,239, with nothing into savings or retirement and no illness or vacation:

Housing = 5,171 ($431/month for rent and utilities)

Transportation = 1,723 ($144/month)

Food = 2,586 ($216/month)

Health Care = 1,206 ($100/month)

Clothing etc = 5,516 ($460/month)

The rental costs seem lower than I would feel comfortable living in.  Transportation costs are lower than the cost of owning a car with a payment, but perhaps do-able in another way.  Food clothing/misc are in the ballpark.  Health care seems low….  And these are the numbers for the proposed increase to $10.10/hour.  Very tight with no room for error or hardship or unanticipated costs.