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Cuomo’s Minimum Wage Hike to be Subsidized by Taxpayers, Will Result in Thousands of Lost Jobs
Posted By Daniel Greenfield On April 2, 2013 @ 10:41 am In The Point | 10 Comments
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.
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