McDonald's insults minimum wage earners.

Via ThinkProgress, it's simply amazing at the indecency of McDonald's publication showing how its workers could live off minimum wage, if only they learn how to budget.  First off, I can absolutely state that it is entirely possible to live at the federal minimum wage rate, but you have to sacrifice a lot of things, and you're out of luck if you live in a big metro region.

If you look at their numbers, some things might be overstated in the monthly expenses portion, but it severely understates the health insurance budget.  Even if you base future healthcare costs on Obamacare, your out of pocket costs with $24,720 in gross income, is $141 / month for the Silver level, which is still above the $20 monthly allowance provided by McDonald's sample budget.

Still, McDonald's budget is worth scrutinizing further than what even ThinkProgress did.

Assume:
52 weeks a year of work
$7.25 federal minimum wage

$1105 + $955 = $2060 / month  (your total income from two part-time jobs)
$2060 x 12 = $24,720 / year

$24,720 / 52 / $7.25 = 65.6 hours a week of work.

However, there is one glaring problem: This does not take into account any taxes, federal or local.  So this is how it breaks down:

Assume:
Total wages / year = $24,720
Standard deduction = $9,750
2012 federal marginal tax rates: 10% first $8,700; 15% $8,700 - $35,350
2012 average combined local tax rate across the US (excluding DC, based on conservative Tax Foundation): 6.33%

$24,720 - $9750 = $14970 taxable income
= $1,811 annual federal tax based on 2012 tables

$24,720 - $1,811 = $22,909
6.33% x $22,909 = $21,459 total leftover income.
$21,459 / 12 months = $1,788 monthly net income.

$1,788 - $1,260 (see monthly expenses in chart) = $528 monthly spending money.
$528 / 30 days a month = $17.60 a day.

McDonald's expects minimum wage workers to work 65.6 hours a week and pay for meals AND clothing AND entertainment AND vehicle registration fees AND auto repair deductibles AND parking fees AND medical copays AND driver's license renewal fees AND furnishings for $17.60 a day.

And because you're working 65.6 hours a week, you don't have any time to go to college, so they don't even bother adding educational fees into their sample budget.  Apparently the other message from McDonald's is, that you're not allowed to have children if you're earning minimum wage.  No pets either.

Those McDonald's corporate folks seem sadly and hilariously detached from reality, don't you think?

Could someone ask corporate how much per diem they offer to their traveling white collar employees?