Hearing on the Minimum Wage

Tomorrow, on Tuesday, June 11th, the legislature’s Joint Committee on Labor and Workforce Development will be holding a hearing at 10 am in the Gardner Auditorium. They will consider several bills, one of which would significantly increase the minimum wage in Massachusetts. The bill is sponsored by four legislators: Senators Marc Pacheco (D-Taunton) and Dan Wolf (D-Harwich), Representative Michael Brady (D-Brockton), and former Representative Marty Walz (D-Back Bay).

Specifically, the bill seeks to do all of the following:

    • increase the minimum wage from $8/hr to $9/hr 60 days after enactment

    • increase the minimum wage from $9/hr to $10/hr on July 1, 2014

    • increase the minimum wage from $10/hr to $11/hr on July 1, 2015

    • index the minimum wage to inflation beginning in 2016

    • mandate that the MA minimum wage be $1.50/hr above the federal minimum wage

Senate President Murray has publicly indicated her openness to this measure, which would almost certainly have major negative consequences for the Massachusetts economy. Therefore, it is very important that as many opponents as are able show up. If you know other elected officials, candidates, or business owners who would be willing to testify, please encourage them to do so. This would be a great opportunity for them to make a positive difference in our Commonwealth!

About MassFiscal

  • Then we could all be rich…

  • Vote3rdpartynow

    The 37.5% wage increase (over 3 years) would be accompanied by the corresponding increase in payroll taxes.  It will kill small businesses….

    The result:

    1. More people laid off and forced to work as 1099 workers without benefits.  Perhaps part of the Obamacare plan.

    2. Small businesses would be unable to expand and may have to move to New Hampshire.

    3. College kids and high school kids would be unable to find work during summer months that are crucial to helping them pay for college tuition.

    4. Sectors such as retail, hospitality would be destroyed.  these are important to tourist driven economies.

  • Just what every business that is struggling to stay afloat is a 12.5% increase in their labor costs mandated by the State government.  Yes, I know its even more than that as it will hit your FICA, unemployment, workers compensation and other costs that are tied to your employes’ pay.  

    So guess the good folks on Beacon Hill have decided that this is exactly what the economy needs, a significant increase in entry level wage rates followed by an increase in prices for goods at firms that empty entry level labor, followed by higher unemployment and high e unemployment insurance rates.  So much for an economic recovery.

    On a more positive note, we’ll be #50 for business climate!

    This type of an idea can only come in a state dominated by a single party without any connection to economic reality.

  • vs making the poor pay taxes…

    It’s all tied together, but we don’t have the complete debate…just the “it will kill businesses and the economy.

    First what is considered poverty?

    2013 POVERTY GUIDELINES FOR THE 48 CONTIGUOUS STATES

    AND THE DISTRICT OF COLUMBIA

    Family of…

    1 $11,490

    2 15,510

    3 19,530

    4 23,550

    5 27,570

    6 31,590

    7 35,610

    8 39,630

    Now, let’s assume the current $8 an hour wage for a single parent with 2 kids (that would be a family of three for V3PN) and let’s assume 40 hours a week and two weeks of unpaid vacation:

    40 hours a wk at $8 per hr = $320 a wk, or $16,000 a year  POVERTY LEVEL

    40 hours a wk at $9 per hr = $360 a wk, or $18,000 a year STILL POVERTY

    40 hours a wk at $10 per hr = $400 a wk, or $20,000 a year. In 2015 what will the poverty level be?

    Now the phrase “working poor” has meaning.  Sure these folks don’t pay FEDERAL INCOME taxes…but they pay FICA, MA state income and sales taxes, so you can’t say they don’t ahve skin in the game.

    And at these income levels, they no doubt are getting different forms of gov assistance.  And that’s what I don’t understand about conservatives…?  They favor a policy that allows businesses (lots and lots of businesses) to pay poverty wages, that forces the rest of us to pay for benefits and services that their employees can not afford because they make poverty wages.

    It really is a zero sum game for society…pay low prices for things, but pay more taxes (or add to the debt) for the safety net low wages creates…or pay more in goods and services, but less in the safety net for the working poor.

  • Just saying.

  • nomad943

    How much worse can it get? There aren’t any jobs now, unless you count McDs and Subway.

    So maybe if they jack up the minimum wage 3 bucks I’ll be paying 10 bucks for a sandwich in a few years. No wait, I wouldn’t pay that much … and neither will anyone else.

    Goodbye fast food jobs.

    I hate this state.

  • Striker57

    These damn workers  -how dare they expect a pay raise after 8 years!?. So what if 63% of minimum wage workers are 20 years or older; or that 58% of them are women; or that 1 in 4 minimum wage earners have a child under 18. They should be willing to work 40 hours a week for $7000 a year below poverty level. Just be happy you are making profits for the boss and shut up for god’s sake.

    To make the rich work harder you pay them more. To make the poor work harder you pay them less!

  • If a business can’t pay the legal minimum wage… Then it won’t.

    Welcome to the black market economy!

    Pacheco really, really has got to go.