Another push is underway to raise the minimum wage. But what you probably haven’t heard is that Obamacare has already done that.
The plan on the table in Congress would raise the federal minimum
wage above $10 an hour (which is higher than all existing state rates).
Obamacare’s mandate on employers, however, is already scheduled to raise
the hourly cost of hiring a full-time worker past $10 an hour.
The idea behind a minimum wage is to help low-income workers. But
Obamacare’s mandates will hurt the job prospects of these very
workers—and raising the federal minimum wage would further limit the
number of jobs available.
Combining federal (or state) minimum wage rates, payroll taxes,
unemployment insurance taxes, and soon Obamacare’s employer mandate,
employing a worker full-time will cost a minimum of $10.30 an hour. The
government has made hiring more costly without raising workers’ pay.
Unfortunately, this will make entry-level jobs harder to get. And
these jobs are important. For the majority, they are stepping stones to
higher pay and higher-skilled positions. As Heritage’s James Sherk and
Patrick Tyrrell explain:
Two-thirds of minimum wage workers earn raises within a year.
Entry-level jobs pay off in the long run for many workers. But if
Congress adds a minimum-wage hike to the Obamacare mandate, many
employees will never get that chance.
Of course, companies with 50 or more employees can avoid Obamacare’s
mandate by cutting workers’ hours below 30 hours per week. An increasing
number of employers announced plans to do exactly that before the
Administration delayed the mandate a year. Fewer hours is not a good
outcome for workers.
(Click link below to read more)
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- Judy Chaffee
- This site is the inspiration of a former reporter/photographer for one of New England's largest daily newspapers and for various magazines. The intent is to direct readers to interesting political articles, and we urge you to visit the source sites. Any comments may be noted on site or directed to KarisChaf at gmail.
Monday, December 9, 2013
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