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Maryland Democrats Levy $100,000,000 Tax On Businesses, Customers


The Washington Post - Maryland lawmakers voted yesterday to raise the state's minimum wage by $1 an hour, delivering a pay increase to more than 50,000 workers who toil on the bottom rung of the employment ladder.

"Toil at the bottom rung..."

You gotta love objective journalism. The article continues...

The Democrat-led Senate voted 30 to 17 to override Gov. Robert L. Ehrlich Jr.'s veto of the legislation, which will in 30 days officially increase the minimum wage in Maryland to $6.15 an hour, $1 more than what is mandated by federal law. The House, also led by Democrats, voted to override Ehrlich (R) last week.

Going with the idea that this pay hike impacts 50,000 workers we're talking about businesses dealing with an additional $2,000,000/fourty hour week in wage expenses. That works out to $100,000,000 over a 50 week work year. That number may be a little higher or lower as these numbers are just based on generalizations, but the point is clear: This minimum wage hike is going to be a huge burden to businesses.

And who will end up dealing with that burden? The workers who get fired and the people who have to pay higher prices thanks to businesses dealing with the added expense of an increased minimum wage. But that's beside the point, right? Demcrats will enjoy the warm fuzzies that go with pandering to their union supporters and can defend themselves from any Republican criticism by claiming that opposition to increased minimum wage is tantamount to not caring about low-income workers.

You can read more from Rob Port at SayAnythingBlog.com


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Comments (5)

Maryland, my Maryland is st... (Below threshold)

Maryland, my Maryland is starting to look more and more like Massachussetts.

Rob, it's a real stretch to... (Below threshold)
Indy Voter:

Rob, it's a real stretch to presume that those 50,000 minimum-wage jobs are all 40 hour/week jobs, and that's what your $100 million figure is based on. Also, what's the GDP of Maryland? I suspect that McDonald's sales alone exceed $100 million annually. Your "huge burden" assertion is highly suspect and seems more the result of hysteria than of a realistic evaluation of the bill's likely impacts.

Two summers ago, Santa Fe raised its minimum wage from $5.15/hour to $8.50/hour, and there were no catastrophic results. Prices went up at McDonald's and similar low-end service stablishment - by about 5% - while high-volume retailers with minimum wage employees (e.g. grocery stores) had no noticeable price increases as a result. A handful of marginal businesses - businesses already teetering on the verge of collapse before the wage increase - closed after the price increase and cited increased labor costs as one of many issues which led to their closing, but there were no mass layoffs. There also hasn't been a migration by businesses from inside to outside the city limits, where the federal $5.15/hour minimum wage still appplies.

A number of other municipalities as well as several states have acted to raise the minimum wage above the federal minimum, and without dire consequences. I don't thimk the sky will fall on Maryland as a result of this bill.

Hmmm.Well look on ... (Below threshold)


Well look on the bright side. You can start calling it "Taxland" anytime now.

That's a plus.

Ok. Not really but it's a Wednesday here so that's got to count for something.

Florida just passed, last y... (Below threshold)

Florida just passed, last year, a $1 increase over the federal minimum.

I keep the books for a singly owned restaurant and this $1 increase costs us about an additional $5K a month, mainly because our servers made $2.13 an hour plus tips, which put them far and above minimum. They were closer to about $12 an hour with tips. The increase also stated that server wages were to be increased $1. The cooks and others were already paid well - $10/hr or more.

That $5K is half our rent. It hurt us.

Everybody just looks at it myopically and says, "So what? McDonalds can afford it." It's not that simple.

Hmmm.It's... (Below threshold)


It's not that simple.

Agreed. Generally higher state mandated prices, through excess taxation or forced rise in wages, benefits the larger corporations at the expense of smaller local businesses. It's the larger corporations that have the accounting and legal muscle to optimize operations for tax-avoidance and who can absorb additional costs easier.

Frankly a lot of small businesses are "marginal" in terms of profit. Not that they are marginal businesses it's that the profit margin itself is very thin. Anything that impacts that profit margin can have a catastrophic impact on the entire business as it could force the business to abandon the existing business plan.

Oh heck I could probably write an essay on this subject. Frankly the proverb "The road to Hell is paved with good intentions" is the one that applies best to this nonsense.






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