The Minimum Wage and Small Business
Earlier today, House Democrats pushed through an increase in the minimum wage – from $5.15 to $7.25, as part of their first 100 hours initiatives. Many conservatives and pro-business groups are concerned that the minimum wage will hurt economic growth by forcing small businesses to raise prices or hire fewer workers. And President Bush has signaled that he’d sign the bill only if it includes a tax break for small businesses. So it’s well worth inquiring - particularly in an age of huge deficits - whether a tax break for small business would actually be needed to offset the new wage – or if small businesses would do just fine without it.
Former Secretary of Labor Robert Reich concludes that small businesses don’t really need the tax break to stay competitive. Because almost all small businesses compete locally, their competitors “will be paying the same minimum wage increase.” What that means is that no business will be disproportionately affected; rather all businesses will pass the added costs equally onto consumers. Reich continues:
Besides, it's not really an increase anyway. The current minimum wage was enacted ten years ago, and inflation since then has eroded its value so much that the new proposed minimum is more like an inflation adjustment than a real increase. Most small businesses charge prices that have risen with inflation. It's only fair that their employees' wages should rise with inflation, too.
In fact, a minimum wage hike may actually help small businesses. Evidence from states that have already increased their own minimum wages suggests that a modest increase convinces more people to enter the labor market -- people like retirees, spouses, or teenagers who wouldn't bother working at a lower minimum wage. With more people willing to work, small businesses have more choice of whom to hire. That means they can find more reliable employees, and reduce costs associated with turnover.
let him veto it then let the senate republicans refuse to override that veto. many of the nation's largest labor markets already have MW's higher than the proposed federal minimum. if anything, the repugs ought to jump all over this bill since the indexing provision essentially locks the MW into a level lower than first enacted while simultaneusly taking the regular raising of the MW off the table for future polical debate.
January 10, 2007 3:35 PM | Reply | Permalink
This is a smart blog. I mean it. You have so much knowledge about this issue, and so much passion. You also know how to make people rally behind it, obviously from the responses. Youve got a design here thats not too flashy, but makes a statement as big as what youre saying. Great job,children health indeed.
January 15, 2011 9:02 AM | Reply | Permalink
user-pic
Hey, at least your post got submitted. I copied my last one, and when I got booted off, I logged back on and pasted a post, got the "Thank You" message, but the post is not there 15 minutes later.
Loan Modification Programs
August 18, 2010 4:46 AM | Reply | Permalink
Hey, at least your post got submitted. I copied my last one, and when I got booted off, I logged back on and pasted a post, got the "Thank You" message, but the post is not there 15 minutes later. Party Planner
August 18, 2010 4:47 AM | Reply | Permalink
Thanks for your patience and sorry for the inconvenience!
Best regards, Mary, CEO of youtube converter
December 20, 2010 3:29 AM | Reply | Permalink
Your article was very well written response to many problems, that is what I do not know, thank you.This
is my website!I hope you like it!
Christian louboutin|
Abercrombie and Fitch
August 24, 2010 9:55 PM | Reply | Permalink
hopefully we will see another increase in the wage this year as the current economic state is cribbling peoples living.
how to kickflip
September 3, 2010 8:10 PM | Reply | Permalink
I think we need to bring more ideas for this purpose. Involvement of young people can be handy in this regard. I am happy to find a good post here. Thank you
tax lien auctions
January 6, 2011 3:40 PM | Reply | Permalink
Send Flowers to your Mother any time any where through our services mothers day flowers Jamaica Very Informative And Interesting Blog to read very nice mothers day flowers delivery Lebanon Happy Mother's Day
March 2, 2011 5:16 AM | Reply | Permalink
religious sect may degenerate into a political faction,' wrote James Madison, but the new American nation would nevertheless be protected against the ungovernable combination of religious fervor and political power as long as the Constitution prohibited the federal government from establishing any particular creed as preeminent.
Egitim | Chat
March 7, 2011 8:18 AM | Reply | Permalink
This information is very useful!Thank you!
Best regards, Katya, CEO of backup hyper v, iscsi mscs
April 12, 2011 5:21 AM | Reply | Permalink
I suggest this site to my friends so it could be useful & informative for them also. Great effort.mothers day flowers Netherlands
April 19, 2011 7:16 AM | Reply | Permalink
I would like to thank you for the efforts you have made in writing this article. I am hoping the same best work from you in the future as well.
CCNP Training I Java Certification
April 28, 2011 6:01 AM | Reply | Permalink
Si vous etes interesses par le dossier, ou desirez en savoir plus, contactez-moi par mail, et je vous mettrai en contact.
Best regards,Jane, CEO of virtualization high availability
May 5, 2011 4:36 AM | Reply | Permalink