Quote: Originally Posted by SLM
I was reading this yesterday. Retroactive, argh! I know it's selfish but right now all I can envision is going back through payroll records for the past couple of years and how much of a pain in the butt that's going to be.
Lets be clear, they are not talking about going back and paying people more money for work their did over the last 4 years.
They are talking about tying the minimum wage to the CPI. The "retroactive" aspect is that they are proposing to count the last 4 years of inflation into the initial starting point once the system is in place. That would bring the minimum wage up to around $11, up from $10.25.
Quote: Originally Posted by Walter
That is a huge tax increase for small business and will cause bankruptcies and higher unemployment; typical Lib policy.
Well, no. A 1%-3% increase in labor costs that only applies to the workers who happen to be making minimum wage is a very very tiny increase in costs.
If we were going to go the other route and distribute more money through something like the EITC, we would probably be looking at a much larger tax increase.
Granted, this bump isn't large enough to significantly change things for people trying to live on minimum wage, but it does keep them from falling further behind. It also provides predictability for businesses, which is much better for them than sudden large jumps.