Yesterday the Senate approved minimum wage increases with tax breaks for small business.
To attract Republican support, Senate leaders agreed to extend tax credits and expand deductions for businesses that would be hit hardest by the minimum-wage increase. Those tax breaks, worth $8.3 billion over 10 years, are coupled with a proposal to raise taxes by a similar amount on corporations, their chief executives, and other highly paid workers.
The small business tax breaks they added though are unacceptable to leaders in the “House” however so who knows how this will play out? I doubt they’ll be very popular with big corporations, their executives, and “highly paid workers” either. When you “rob Peter to pay Paul”, Peter doesn’t get too excited.
One research study indicated that rural workers would benefit more than urban workers from a minimum wage increase. Tight job markets already have entry level positions above the current minimums. Tough job markets in many rural areas (our county received a 30+% jump in “homelessness prevention funding” from the national Emergency Food and Shelter Program simply because unemployment had jumped drastically in the reporting period for which the allocation was based) will have see fewer entry level opportunities for the lowest skilled workers, teens, and seniors trying to supplement their incomes I suspect.
Entrepreneurs keep wondering how they can raise their income with the stroke of a pen. In the real world, that only happens when you’re customer is signing a check for your services rendered!
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