President Obama wants to hike the minimum wage to $10.10 per hour, but what he isn’t telling people is that with Obamacare, the minimum wage employers will be paying is going to be $10.30 per hour, not counting existing payroll taxes and other costs of labor like workers’ compensation. This will make it even harder for low-skilled workers to find jobs, and could cost the jobs of many who are lucky enough to be employed today.
The government has already effectively raised the minimum wage above $10 per hour—without benefitting workers. President Obama’s health care law requires employers to offer full-time employees health benefits that meet certain “minimum standards” criteria. Otherwise, they pay a penalty. In 2015, this mandate will raise the minimum productivity necessary to hold a full-time job to $10.30 per hour.Employers will lose money if they hire employees who produce less than this amount.
The President now proposes raising the national minimum wage to $10.10 per hour. Coupled with the employer penalty and existing taxes, this would raise the minimum cost of hiring a full-time worker to $12.71 per hour. Employers would respond by eliminating jobs and cutting workers to part-time status, making it significantly more difficult for unskilled workers to get ahead. (Read More)
For many small and medium businesses it’s hard enough to make payroll as it is. This is going to make it even harder, and those added costs are going to have to be passed along to consumers. If that can’t be done they have to let workers go, cut hours, or just go out of business. We’re only just beginning to see the harmful effects this dreadful law is having on the economy.
H/T Daily Caller