A general principle that all economists (regardless of their ideology) agree on is that you get more of what you subsidize, and you get less of what you tax ...
Now, there are two general strategies that have been used by employers in modern history. On one hand you have employers who pay their employees as little as possible to keep their costs down, and on the other hand you have employers who pay a premium to attract overall better employees; and the reason they pay more is that the productivity and increased quality of the better employee more than compensates for their higher wage.
Beyond the inflationary increases which minimize the benefits of subsidies, when you subsidize low income earners you’re (in essence) subsidizing the low wage business strategy that their employers execute; and when you increase taxes to pay for it you’re (in essence) adding a tax to the high income employers strategy.
Over decades of executing this strategy, any company that hires employees in career fields which have wage ranges that fall into the subsidized range and executes the high income strategy has probably been run out of business by the government’s influence or abandoned the strategy in favor of the low income strategy. Beyond that, those companies which have been so well rewarded by paying as little as possible have continued to execute their strategy and are now chasing inexpensive labor on a global scale; and are off-shoring jobs to India and China.
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