Well the new minimum wage laws are gonna pass and will give all business a %41 rise in the cost of doing business.

Dems think there sticking it to business but what they dont realize they are sticking it to themselves. Do you really think those greedy businesses will eat the added cost of doing business. I dont think so. They will just pass it along right to you. Thats if they stay in business.

Thank you....

__________________
AMERICA LAND OF THE FREE HOME OF THE BRAVE--BECAUSE OF OUR CONSTITUTION.

Please give reference when you say stuff like this...don't just make it appear out of thin air.

come on cat. It is simple you take 5.15 which is the current minimum wage. now this is bumed up to $7.25 that is you 41 % not only that the employer pays to the govenment as a percentage of persons wage in Payroll taxes, Social Security Taxes and all the other good stuff. This averages out too $5 dollars in taxes are paid to the govenment for every $10 an employee earns.

yes the employer has to pay another $5 in taxes to the government for every $10. to keep you on the payroll.


Not only that many business have tiered raise systems. Meaning that a guy that comes in working at minimum wage gets a Certain percentage raise a year ever year as long as that person stays in the company. This creates a domino effect all the way up the pay structure. Reason being is that the entry level employee is automaticly bumped up to what a lets say 3 year employee is making. Now the 3 year employee will want his income to increase at the same proportianal rate that new guy is making. Thus bringing him on the same pay grade as the 5 year guy. And the cycle continues all the way up the hourly wage ladder.

So in reality if lets say you had a payroll of $50,000 a month. And you apply the linear increase of the 41% stepping up the payroll ladder the payroll now becomes $70,500. And the taxes the employer has to pay the government for each labor our worked goes from $25,000 to $56,000. So all in all the company has to now pay $126,000 a month instead of paying $75,000.

I dont know about you guys but if this was most business it would cut right into any profits that are left if prices remain the same. So what most business do is raise there prices. Thus passing it on to the consumer who now has to pay for the added cost of doing business. Thus having to pay 41 % more for the products they buy. Virtually voiding any gain of buying power they received from there raise.

And yes this is oversymplified and there are tons of other variables involved but the function of a minimum wage increase is what i posted above.

Clinton started it with NAFTA, Nance is just following their lead.

It is funny as hell to hear the Liberal/Socialists say " well business will just have to pay it." They have no grasp who business is. It isn't evil Halliburton. They don't have minimum wage workers. Nor is it General Motors. It IS the small companies, and those that hire unskilled labor. Shareholders are not going to eat it. They will replace the CEO, or sell the stock. CEO's will dump the older, slower workers and fill their spots with younger faster workers.

__________________
How soon do we get our rebates, free health care, lower taxes, better schools, and cheap energy?

Doesn't work this way. Every current employee doesn't automatically get a raise, possibly the ones below the minimun wage but there is nothing that says you will get bumped all the way up the pay scale coming from the federal level. I have worked in all sectors of emplowment and you are making some wild assumptions here. There are many different types of employment situations and from state to state and this works differently. Gix, you live in NY (right?) and there are many more overriding labor laws that make things more expensive there and the pay scales higher. That is good or bad depending on the way you look at it. Unions and collective bargianing are a big thing in that region. Here in the South we are in the middle of "Right To Work" states and things are way different. Unions and collective bargaining are scarce and that makes a big difference in terms of what the employer is 'required' to provide to the employee. And, that has its ups and downs too...our cost of living is far lower so there are not too many gripes but if that were to change (and it is in Atlanta) then the bottom end gets hosed due to very high housing costs and demand.

Sorry Cat it does to some degree. In my case it will. I have two locations that have positions that start at min-wage. I have long term employees in these positions that will be resentful due to the starting wage increase for the newest employees that will of course expect a raise. It will no doubt be a higher percentage regarding taxes paid out on my end. This will not be good for any small or large business owners.
But no, this will not pose a problem with the professional positions as they are paid on an entirely different pay scale.

You have basically agreed with me. The figures and the way this work does not wildly put the whole thing our of whack as suggested by the thread. No, the federal government is not necesarily doing all employers a favor here either. Actually, I was in the middle of a wage negociation this past two months with a place that normally (a big theatre here that deals with national tours) and we as employees have always sided with the theatre instead of the union because the employer has always acted in good faith towards us. Individually and there is a set of us musicians that just is very anit union (AF of M) because of the stupid stuff that the union does at times in demanding some very whacking things. I understand both sides of this and both sides have to be reasonable.

I am not sure the minimun wage with go up that far and might be comprimised down a bit if passed.

I see. I have heard figures of up to 2.10. That is a little high for the average min-wage job, and I do oppose it, but we will see. I do recognize when some of the young mothers and/or hard cases do want to work and they climb the wage ladder fairly quickly withing in my circuit. I do know that isn't the case everywhere. I think for most business owners it is more of a control issue.