NY Hikes Minimum Wage, With Taxpayers Picking Up the Bill
Economic fail, times two
A hike in New York's minimum wage is a big win for Democrats, but a provision buried inside the tentative state budget shows taxpayers will be paying much of the bill.
The "minimum wage reimbursement credit" is spelled out at the bottom of a revenue bill in the budget separate from the minimum wage measure. The credit would reimburse employers for part of the difference in wages from the current $7.25 minimum wage as it rises to $9 an hour by 2016.
Once it reaches $9 an hour, employers would pay 40 cents and taxpayers $1.35 of the extra $1.75 an hour workers are paid.
Employers including big-box department stores and fast-food chains will get tax credits for seasonal employees, ages 16 to 19, who are still in school, which some advocates for low-income residents say will hurt adult workers.