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New York’s Minimum Wage Hike: Taxpayers to Foot the Bill

Posted by markjames (My Page) on
Thu, Mar 28, 13 at 13:12

"New York’s Minimum Wage Hike: Taxpayers to Foot the Bill

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.

Employers including big-box department stores and fast-food chains will get tax credits for seasonal employees, ages 16 to 19, who are still in school, which some advocates for low-income residents say will hurt adult workers.

Advocates for the working poor fear the credit will prompt employers to replace adults with students. Mauro said Tuesday 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.

Advocates for the working poor fear the credit will prompt employers to replace adults with students. Mauro said Tuesday 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.

The credit “flies in the face of sound tax policy, good labor market practice, or common sense,” Mauro said.

The think tank said the credit would “dangle $1,560 to $2,808 out in front of employers for every adult worker they manage to substitute with a student.”

“It’s a big subsidy for the corporate low-wage economy,” said Mark Dunlea of the Hunger Action Network advocacy group.

Employers would be compensated at a rate of 75 cents an hour per employee when the minimum wage rises to $8 beginning next year, an election year. Employers would get $1.31 an hour for workers paid minimum wage when it rises to $8.75 in 2015. When the minimum wage rises to $9 in 2016, employers would be subsidized $1.35 an hour for three years.

Mauro calculates the state will pay over $2,800 a year to an employer beginning in 2016 for paying a teenager minimum wage. And although the measure would prohibit firing an adult solely to hire a teenager and collect a credit, Mauro and Dunlea said that would be hard to enforce.

But Cuomo said the credit was a compromise to raise the lowest wages for millions of New Yorkers."

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Seems odd that employers will lose the credit if they pay qualified workers more than the minimum wage...

That said, it seems like a good subsidy for inexperienced and unskilled young workers priced out of the labor market.

Here is a link that might be useful: Taxpayers Foot The Bill


Follow-Up Postings:

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RE: New York’s Minimum Wage Hike: Taxpayers to Foot the Bill

Like I said in the other thread, isn't the invisible hand supposed to take care of these issues? Why the concern about people on the wrong side of the exchanges?

If they'd had the foresight not to be young, unskilled, unremarkable, and without assets, they wouldn't have to be exploited by employers.


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RE: New York’s Minimum Wage Hike: Taxpayers to Foot the Bill

Speaking of getting on the better side of exchanges, I ran into one of my former tenants, now about 25 years old that bought and renovated a 3 family village home that's now collecting, not paying rent.

Turns out I was bidding against them at the online tax auction. Had I known I wouldn't have run up the bid on two different properties they were bidding on.

The rents they're charging are way low as well. They can easily make another $600 per month with some relatively inexpensive improvements.

When they rented from me, I told them to stop putting money in my damn pockets and stop financing new expensive vehicles and toys.

They're now in a much better school district with very reasonable property taxes within walking distance of two very nice lakes with fantastic fishing and boating.

On Topic, most low wage workers we know already make $9 Plus Per Hour.

You won't attract and keep qualified job seekers and top performing workers paying minimum wage.

Even local convenience store mega-chains have had to increase wages, hours and benefits to attract and keep top performers.

By 2016 $9 per hour won't go far with rents, property taxes and other costs increasing at current rates.


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RE: New York’s Minimum Wage Hike: Taxpayers to Foot the Bill

Yeah, they won't be buying a Volt to keep Heri happy or building that new McMansion.

Minimum wage needs to be $19 per hour. Yes, businesses will close, but unemployment is cheaper than subsidizing minimum wage.


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RE: New York’s Minimum Wage Hike: Taxpayers to Foot the Bill

Yeah, they won't be buying a Volt to keep Heri happy or building that new McMansion.

Minimum wage needs to be $19 per hour. Yes, some businesses will close, but most of them will be the ones less favored at HT.

Fast Food
WalMart
HD
Lowes
WalMart
WalMart


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RE: New York’s Minimum Wage Hike: Taxpayers to Foot the Bill

Higher wages in fast food industries may lead to better burgers.

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"The most expensive part of that flimsy burger from your local fast food joint isn't what you put in your mouth; it's the human hands that put it together. But this robotic burger-maker that preps, grills, and assembles your Royale with Cheese�"automatically�"may soon replace human line cooks altogether while saving the fast food industry billions.

Built by San Francisco-based Momentum Machines, this robotic burger maker is designed to do the work of three full-time kitchen staff. The current alpha version of the machine grinds, stamps, and grills patties (made to order), then cuts and layers lettuce, onions, pickles, and tomatoes before slapping everything on a bun and wrapping it to go. The only human labor involved is that needed to take the customer's money and hand over the completed burger.

This robot is not only fast�"able to spit out 360 burgers an hour�"it is exceedingly compact as well. Instead of the normal full kitchen with its multiple workstations dominating the rear half of every restaurant, the burger-maker takes up only 24 square feet. Momentum Machines hopes that this will spur a redesign of fast food eateries more focused on the customer experience. What's more, this machine is far more sanitary than current methods. By removing humans from the cooking line, this machine also removes the possibility of contamination from our many bodily fluids.

This machine is also relatively inexpensive to operate compared to human workers; it doesn't call in sick or get hurt or randomly walk off the job either. Momentum Machines estimates that every fast food franchise in America spends an average of $135,000 annually on staffing. By replacing these people with this machine, the fast food industry could save upwards of nine billion dollars a year�"a savings that could be reinvested in much better quality ingredients without raising the cost of the product itself. Now that is a tasty burger."

Here is a link that might be useful: This Robo-Griller Can Flip 360 Burgers an Hour


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RE: New York’s Minimum Wage Hike: Taxpayers to Foot the Bill

I think Bat-dork says it best: "So what exactly are we going to do with all the unemployed liberal arts majors, millennials and facebook trolls if Mc Donalds adopts this?"


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RE: New York’s Minimum Wage Hike: Taxpayers to Foot the Bill

The majority of the population does not have valuable skills, period.

Some have skills that took a lot of time to develop but are nevertheless not in high demand due to those individuals not being inside the economy of the plutocrats because of lack of knowing the right people and/or being in the wrong place.


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