Cuomo’s Minimum Wage Hike to be Subsidized by Taxpayers, Will Result in Thousands of Lost Jobs

Daniel Greenfield, a Shillman Journalism Fellow at the Freedom Center, is a New York writer focusing on radical Islam. He is completing a book on the international challenges America faces in the 21st century.


What’s the only thing worse than forcing struggling businesses to fire employees or raise prices to fund a mandatory minimum wage hike? Getting the struggling taxpayers of a struggling state to subsidize an open-ended mandatory minimum wage hike.

To no one’s surprise, this brilliant plan appears to come from Mario Cuomo’s idiot son, who passed a gun control bill that was unworkable and had to be modified over and over again.

If anyone can come up with a worse idea than Obama Inc, it’s Governor Andrew Cuomo, the man who helped cause a nationwide financial crisis, married a Kennedy and knocked off a blind black governor from his own party for the chance to screw up the state.

How badly could Mario Cuomo’s idiot son screw up a simple minimum wage hike? Just watch.

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.

The cost of the measure approved in closed-door negotiations between Gov. Andrew Cuomo and legislative leaders won’t be known publicly until after the budget gets final legislative approval, which is expected by the end of this week. Early estimates are between $20 million and $40 million, with no cap on the total.

“You are kind of flying blind on this,” said Frank Mauro of the progressive Fiscal Policy Institute.

New York State is hardly fiscally sound and with pensions looming on the horizon, so of course the brilliant plan is to commit New York State to subsidizing a minimum wage hike years in the future whose amount will only be fully known then.

How bad is Governor Andrew Cuomo’s scheme? It’s so bad that even liberals are agitating against it.

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.

The think tank said the credit would “dangle $1,560 to $2,808 out in front of employers for every adult worker they manage to substitute with a student.”

Advocates for the working poor fear the credit will prompt employers to replace adults with students. Mauro said Tuesday the credit also would result in the first maximum wage for many employees because employers would lose the credit if they raise wages over the minimum wage.

The credit “flies in the face of sound tax policy, good labor market practice, or common sense,” Mauro said.

Mauro calculates the state will pay over $2,800 a year to an employer beginning in 2016 for paying a teenager minimum wage. And although the measure would prohibit firing an adult solely to hire a teenager and collect a credit, Mauro and Dunlea said that would be hard to enforce.

When liberals are claiming that a state backed minimum wage hike is a terrible idea… you know it’s a really terrible idea.

This plan will put thousands of workers out of work and it will squeeze men with families to make way for teenagers with the entire disaster backed by the state. So multiply the plan with more broken families and absent fathers all on the public dole.

It’s either the work of an evil genius or the dumbest governor in the country.

“This budget balances the needs of families and workers who have waited far too long for a minimum wage hike with business owners looking to grow in this still fragile economy,” said Cuomo spokesman Rich Azzopardi.

What it fails to balance is the need to balance state budgets and implement policies that won’t trash the workforce.

 

  • Ben Jabo

    How about a wage hike accompanied by tenure?

  • Ar'nun

    I think this should be subsidized by the Governor's and Legislature's salaries and Office budgets. This has to be the dumbest thing ever proprosed by a Democrat, and that is saying a lot of the party of Obamacare. The only thing saving it from the official tittle of dumbest ever is that it is currently contained in one state. But I am sure Nancy Pelosi and Harry Reid are licking their chops.

  • Mister007

    A good place for the gov is at liars club burlington wi.. He could take first place…..

  • tagalog

    Why not just have the government fund the entire wage-salary structure of the various markets covered by the FLSA? Why just stick at subsidizing the minimum wage?

    That way, when a few years go by, it will be easy for the government to take over all business and install a command-system economy.

    Then we can EASILY become Communists. No muss, no fuss, no bother. Industry and capitalists will probably support it. No revolution necessary, just a nice peaceful transition.

    We pay taxes, the government pays us our incomes, we buy things, in a circle of tax, buy, and sell, with the government the wellspring from which all income is produced, and to whom all money is ultimately rendered. What a perfect scheme – surely it will insure social security at all levels. Right?

  • Phil

    And to think, Cuomo's name has been mentioned as a possible 2016 Presidential bid. Heaven help us!

    • NAHALKIDES

      In a way, that could be a good thing – he's so extreme and not good at covering it up like Obama is that even the inept Republican Party might be able to beat him.

  • AnOrdinaryMan

    Earth to Rich Azzopardi: How are businesses supposed to grow, when they have to pay, in addition to Obamacare, 17 different taxes, and now are forced to pay a minimum wage of $9 an hour, to justify some kommissar's notion of fairness? Businesses will respond by hiring fewer people, and making those they do hire do the work of two. A friend recently got back from a trip to New York state; he said the state is dead–
    no economic growth, and residents barely scrape along, with no expectation that things will get better. Cuomo & Company–killers of the American Dream.

    • Mary Sue

      Pandering to Union buddies is all that matters to them now.

  • Mary Sue

    Mario the Pious "You don't need 10 bullets to kill a deeeeeeeeeeeeeer!" is pandering to the Unions of course. As the Minimum wage goes, so goes the baseline for Union negotiations!

  • Mike R

    Cuomo had to take his bar exam 5 times… how is it possible that he can effectively decide these issues? We experienced the demise of 39,453 NY state businesses last year, Cuomo is raiding $1.75 billion from the reserves of the off-budget State Insurance Fund (SIF). Coumo can not even hold on to his democratic majority. The distance between Cuomo and New Yorkers he is supposed to represent continues to broaden. He has disenfranchised the Northern and Western part of New York with his SAFE Act.. He can’t make a decision, either way with respect to fracking. New York has the highest taxes in the nation. New York is also the most indebted state, with 33 percent of income dedicated to borrowing. It is ranked as the least "business-friendly" state in the country. NY also has the distinction of being the least free state in the union and is termed the “Nanny State” with politicians who wish to legislate what we eat and drink. 9 percent of the state’s 2000 population left the state for another state between 2000 and 2011 — the highest such figure in the nation,” the study by George Mason’s libertarian-leaning Mercatus Center found. http://www.nypost.com/p/news/national/slaves_of_n