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Posted on 03/28/2013 11:51:01 AM PDT by haffast
Edited on 03/28/2013 4:40:08 PM PDT by Admin Moderator. [history]
ALBANY, N.Y. (AP) -- A hike in New York's minimum wage is a big win for Democrats, but a provision buried inside the tentative state budget shows taxpayers will be paying much of the bill.
The "minimum wage reimbursement credit" is spelled out at the bottom of a revenue bill in the budget separate from the minimum wage measure. The credit would reimburse employers for part of the difference in wages from the current $7.25 minimum wage as it rises to $9 an hour by 2016.
(Excerpt) Read more at news.yahoo.com ...
just another “good sounding liberal program” ... more and more and more welfare for more and more and more voters
so there will be even less jobs and even higher taxes...
the Obama downward economic spiral continues....
downward!
(How To Destroy a Great Nation, chapter 666 and counting...)
A 24% wage increase!
This tells me that somebody in the government knows that you can’t just mandate higher wages, without consequences. Raising minimum wages costs jobs. Businesses can chose to: downsize, or go out of business altogether; substitute capital (automation) for labour; or hire more qualified workers (who would not have been attracted to the work, at the old minimum wage).
Many unskilled workers are squeezed out of the workforce, when minimum wages are raised too quickly. A government subsidy lowers the effective wage per employee, and would thus eliminate some of the substitution of capital for labour (not a good long-term strategy — but, the subsidy will “save jobs” in the short term). A subsidy won’t stop the higher-qualified workers from squeezing out the marginal workers at the bottom.
Every subsidy comes with a variety of “unintended effects”. It appears that this one is no different — except that there are also some intended effects, that might hurt marginal workers (the ones that minimum wage laws purport to help).
low information voter ping! Consumers pay some increase, taxpayers pay twice.
But then they can be paid to NOT work, and get their free Obamaphone too!
‘the credit also would result in the first maximum wage for many employees because employers would lose the credit if they raise wages over the minimum wage.’
Progressive are insane.
It is more than that. A lot of Union contracts are based on multiples of the minimum wage - minimum wage goes up - automatic pay raise for Unionistas!
Just another one of those entirely-predictable “unpredictable consequences”.
“The minimum wage reimbursement” act; did come from atlas shrugged?
idiocy
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