Now that it appears the bickering has settled down a bit, there are a couple of things I can add to this (maybe).
First, the military has an interesting way of accomplishing the “family wage” goal. They have a base pay based upon the rank (experience & presumed leadership required) of the individual. They then provide support (in the form of meals and housing) or provide cash “allowances” that are tax exempt if the member doesn’t utilize those provided services:
- Basic Allowance for Subsistence (provides a cash amount needed to feed the military member throughout the month). When I retired 11 years ago, that worked about to be a little better than $200 a month – which was plenty to pay for groceries for a month for the member – obviously a family’s grocery bill could be a whole lot larger, depending on the size of the family.
- Basic Allowance for Housing (provides a cash amount needed for the member to get a reasonable residence based upon his rank and whether he is responsible for dependents or is single). This was augmented by locality based adjustments to make up the difference if the person was stationed in a high cost area, like Silicon Valley, the NYC metro, or DC.
The tax code does not allow for such a thing for civilian employment (it is truly unique to the military), but the tax code is just a statute and it could easily be adjusted to allow for such a thing (if you look at it, the tax code does already make allowances for “family men” – in as much as health/dental insurance covers either the employee or the employee+family and is pre-tax regardless of whether family members are covered or not)
A change to the tax code would not require employers to provide compensation in that fashion, but would allow it for employers who chose to do so. Obviously, it would be to the advantage for both employers and employees, as tax would not be taken out on tax-exempt “allowances” (including the employer portion of FICA).
I am curious if our GS-6 Julianna would regard such an arrangement as “unequal pay” for “equal work.”
I am torn about the idea of a “family wage” myself, even as expressed above. On one hand, the idea of “equal pay for equal work” seems appropriate in the terms of distributive justice (which regulates what the community owes its citizens
in proportion to their contributions and needs); on the other hand, helping an employee provide for their families is also a requirement of distributive justice ( which regulates what the community owes its citizens **in proportion to their **contributions and
needs).
Perhaps if Congress could be convinced to modify tax law to allow employers to establish a salary (taxable) + allowance (non-taxable) compensation scheme, both conflicting needs could be accommodated.
(More later)