This would be hilarious if it happened in some other country. But, the way NY behaves sometimes, it just as well be a different country.
The state of NY has decided to raise it’s minimum wage. Now, that in and of itself is idiotic enough, but, apparently NY is tired of the run-of-the-mill stupidity. They’ve decided to reach for unrealized depths of insanity. Yes, they will have special provisions in their minimum wage raise!
The minimum wages are scheduled to raise from $7.25 an hour to $8 an hour next year. In future years, the minimum wage will be adjusted higher, reaching $9 an hour in 2016.
Employers, however, can get a refundable tax credit to cover the increased labor costs between the old and the new wage.
How cool is that!?!?! NY taxpayers will be on the hook for these wage increases. This is a neat twist. In the past, the businesses were on the hook for these mandated wages and the costs were passed on to the consumer. NY bypasses all of that silliness and simply taxes the people for this. Well, sort of. NY will still see the increased cost passed on. The citizens of NY will just get to pay for it twice!
The reason for this is because the businesses will only get the tax credits for hiring teenagers. The workers must be 16-19 years old in order to get the tax credits. I’m wondering if there will be any consequences to this bit of brilliance? Think any 20 y/o people will suddenly find themselves out of a job? Or elderly people trying to supplement their Social Security income? Well, we shouldn’t concern ourselves with that!
But, even all of this insanity wasn’t enough for New Yorkers. They had to add something else. Something special. Something that adds that “wow factor” just to ensure people know how special these people are. The teenagers must make exactly the minimum wage for the businesses to get the tax credit! Won’t that be the coolest!! You could work for 4 years at one place and never see a raise.
Going from $7.25/hr to $9/hr would be about $3500/yr in additional costs, based on a 40 hour work week and 50 weeks a year. So, if a boss wanted to show his appreciation for a good worker and give him a 25 cent raise, instead of costing the business $500 a year, it would cost the business $4000 a year. They’re not going to do that. Of course, this is based on full time employment, which it’s doubtful most would have it considering the Obamacare terms. So maybe, we can halve that.
PS That’s a great picture above, which I’d love to watermark with some words. Does anyone have any thoughts?
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