Brown urges raising U.S. minimum wage to $10.10 an hour.

Proposal would raise minimum wage from $7.25.
Wire
Mar 28, 2013

 

U.S. Sen. Sherrod Brown touted the benefits of raising the federal minimum wage on Tuesday and said low-income people are struggling to make ends meet across the county.

Mr. Brown (D., Ohio) was stumping in Bowling Green for the Fair Minimum Wage Act of 2013, which would raise minimum wage from $7.25 to $10.10 an hour. The act also would provide cost-of-living increases, as well as increase the base wage for people working jobs in which they get tips.

“No reasonable study shows that it costs jobs,” Mr. Brown said of raising the minimum wage. He said adults — who make up 80 percent of the people who make the minimum wage — would benefit from a higher standard of living.

If low-income workers earn more money, they will pump some of that cash back into the economy, which will benefit everyone, Mr. Brown said at the Grounds for Thought bookstore and coffee shop.

The act would bolster the federal minimum wage by 2015 with three 95-cent increases. It also would allow minimum wage to keep pace with the cost of living after 2016 and raise the minimum wage for tipped employees — which has stayed at $2.13 for more than 20 years — to 70 percent of the overall minimum wage.

Inviting Mr. Brown to speak at Grounds for Thought was important because the minimum wage should be raised, and it's an issue that should be discussed in communities, said co-owner Kelly Wicks. Small businesses should compensate their employees so they can more easily afford something as simple as driving to work, he said.

“The role of a coffee shop in a community has been to create social discourse,” Mr. Wicks said.

Carrie Day, who works two part-time jobs, said she's only able to survive because of tips and artwork she sells on the side. Raising two children, paying for baby sitters, and paying off bills each month would be easier if she made more money.

“If we made more, we could do more,” said Ms. Day, who works in Bowling Green and Perrysburg.

Gary Burtless, a labor economist for the Brookings Institution, a Washington-based think tank, said public opinion polls show that most Americans agree with raising the federal minimum wage, and most businesses wouldn't feel a negative effect if the act is passed by Congress.

Boosting wages for low-income employees, most likely would have little effect on the overall economy, Mr. Burtless said.

“The proportionate gain in earnings would offset the loss in employment,” Mr. Burtless said.

The first 95-cent increase would have little effect in Ohio because the state's minimum wage is $7.85 in most instances, and $7.25 for smaller businesses. Michigan's minimum wage is $7.40.

The U.S. Chamber of Commerce opposes raising the federal minimum wage because it believes the increase could hurt small-business owners. The chamber released a statement expressing concern that businesses might have to trim profit margins to keep up with the increased cost of labor.

The chamber also worried about keeping the minimum wage on pace with inflation, stating: "Employers will likely be faced with automatically increasing labor costs without an automatic increase in revenues or profits."

Mr. Burtless said some businesses that rely on minimum-wage work could be adversely affected by the increase but companies that employ minimum-wage workers usually compete with one another. They wouldn't be put out of business by the increase, he added.

“Since all of them face the same change, they are not at a competitive disadvantage,” Mr. Burtless said.

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By Kris Turner - The Blade, Toledo (MCT)

©2013 The Blade (Toledo, Ohio)

Visit The Blade (Toledo, Ohio) at www.toledoblade.com

Distributed by MCT Information Services

Comments

believe it

This would kill some small businesses.

feedthetrolls

get ready for mcdonald's new 5 dollar value menu?

Now The Rest of...

This from a guy that never worked in the private sector or owned a business.

jack langhals

Hey ,if you guys knows each other,why not use your real names ?

propman

The best way to help those earning the minimum wage would be STOP TAXING EVERYONE SOO MUCH.
We all would be earning closer to the amount + inflation our fathers did (purchasing power) if the government didn't take so much in the form of co-pays.
That is a hidden tax on employees that has grown since instituted very close to the rate workers should have seen their wages increase.

jas

People pay less in taxes now than they did in the 1950's. The tax monster the GOP frequently complains about doesn't exist. If the minimum wage kept up with the rate of growth in CEO and other top executive compensation it would be at least $15.00 an hour. Instead, all businesses, both big and small, keep squeezing the working poor.

Minimum wage is just part of the problem. For example, if a company cut expenses by cutting the CEO's salary and other compensation from $3 million a year to $2 million a year instead of laying off 20 workers being paid $50,000 a year, our economy would be a lot better off. Just an example but it explains what the private sector has been doing for more than thirty years which has destroyed our economy. Another example. In 1979, 28% of the private sector workforce had jobs with a private pension plan. The number is now 3%. Where did that 25% go? They are relying on Social Security for retirement instead of the formerly provided private pension plans. That's why Social Security has problems. Private sector companies have dumped nearly a quarter of the workforce into the Social Security system over the last thirty years.

votelibertarian

We do not pay a lower rate. Everything is taxed and all these taxes add up. for ex. Accounts Receivable Tax
Building Permit Tax
Capital Gains Tax
CDL License Tax
Cigarette Tax
Corporate Income Tax
Court Fines (indirect taxes)
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (42 cents per gallon)
Hunting License Tax
Inheritance Tax
Interest Expense (tax on the money)
Inventory Tax I
RS Interest Charges (tax on top of tax)
IRS Penalties (tax on top of tax)
Liquor Tax
Local Income Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Property Tax
Real Estate Tax
Recreational Vehicle Tax
Road Toll Booth Taxes
Road Usage Taxes (truckers)
Sales Taxes
School Tax
Septic Permit Tax
Service Charge Taxes
Social Security Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Federal Universal Service Fee Tax
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Nonrecurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Toll Bridge Taxes Toll
Tunnel Taxes
Trailer Registration
Tax Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers’ Compensation Tax

"If you drive a car, I’ll tax the street,
If you try to sit, I’ll tax your seat.
If you get too cold I’ll tax the heat,
If you take a walk, I’ll tax your feet."

FlyBoy86

Don't forget Federal Excise Tax (6.25%) and Security Tax ($0.06 per lb.)! Nice Beatles reference by the way.

propman

jas,100 Years ago there was NO INCOME TAX!
I was pointing out one of the hidden ways we have lost so much of our purchasing power.
Taxes and the cost of regulation make up the largest drag on this economy.

votelibertarian

don't forget the "inflation tax"

KnuckleDragger

Jas says, "In 1979, 28% of the private sector workforce had jobs with a private pension plan. The number is now 3%. Where did that 25% go? They are relying on Social Security for retirement instead of the formerly provided private pension plans. That's why Social Security has problems. Private sector companies have dumped nearly a quarter of the workforce into the Social Security system over the last thirty years."

Funny you mention the above. The same thing is happening with Obamacare, and would happen if we went to single payer health care. You dems keep ranting about how great Obamacare is an how we should go to single payer. When private companies drop everyones health insurance, what makes you think govt run healthcare will not end up like social security?

arnmcrmn

@jas....you simply do not know squat.

swiss cheese kat's picture
swiss cheese kat

agreed.

Ehovemom

$10 an hour is $400 a week. Take home $300. Rent in Norwalk is $495-$795; electric, gas, water, gas for your car, car payment, car insurance, food . . .

KURTje

Tighten up on SSI & Medicaid.

Snoozer

I remember making $7.50hr working a construction job back in 1992, you could survive on those wages back then, rent untilities etc. 21 yrs later if you make $12.00hr your considered making good money! So after two decades and a four dollar an hour increase you cant make it on current wages, The cost of living keeps going up but the payscale doesnt. take mcdonalds for example they would only make a 70 billion dollar proffit opposed to a 90 billion dollar proffit! another reason why our jobs went to mexico and china is the greedy wants even cheaper labor than the current minimum wage.

arnmcrmn

@snoozer....this is what happens when you have the paper mills running non stop under Obie printing, printing, printing. Its devalued the dollar so much.

E.Cartman

Time to vote Sherrod Brown out of office.

buckeye15

You will respect his authorityyy.

rejectedmantis

Join a Union & stand up for yourselves

propman

Join a union and see even less of your earnings.

KnuckleDragger

I always laugh when someone brings up joining a union. In my career field those who are unionized not only have to pay their monthly dues, they also are paid less and have a less comprehensive benefit package than those of us who are non-union.

betrump

and where is this?

FlyBoy86

I am a manager at a small business and I am all for increasing the minimum wage to livable standard. I pay my people much more than minimum wage not because I want to make more money, but because your employees are the most valuable resources you have. I also pay them an incentive on top of what I pay them if they hit certain goals. Since it's a small business, I have the luxury of being able to connect with my employees and the communication I have with them is great. Large business' don't. They don't connect at all with the customer. Go into Best Buy for example. Yes they have people walking around, but are they knowledgeable? No. I went head to toe with someone there regarding speakers for surround sound. They had no clue what I was talking about.

Long story short, an increase in minimum wage will only hurt large business, not small ones. If you have a dedicated clientele, they will understand and remain.

arnmcrmn

A 2.50 dollar increase in payroll per person (if they are working for minimum wage) will directly effect everything. Take a landscaping business for example. 6 summer employees, all making 8 bucks an hour.....now that goes to 10 bucks an hour. On your avg. 40 hour week, you will now be forking out as the owner another 480 dollars. Over a summer from April till October that is 3,360 dollars the owner has to fork over to his summer help employees who are doing landscaping. Where do you think that money comes from....outer space? So what the owner of this small business will do is jack up his rates to his consumer to make up for the difference OR fire one employee to make that difference up. Your post is about as true as the unicorn I saw on the road the other day. Sounds good, but.........

Fromthe419

If you increase the minimum wage both small and big business will raise their prices to offset the labor cost, so all if will do is cause inflation. I know that I personally had much more purchasing power in the mid 80's when I was working for minimum wage than someone making minimum wage now and we call all blame the Fed and our fractional reserved banking system for that. They LIE when they say inflation is only 2 percent. It is time to end the Fed and it's creation of money as debt to our nation. Money should be created for the good of the people and not as debt to the people. Take some time to see how money is created, I'm sure if everyone knew it they would want to change the system.

inquiringmind

I watched a news release about this a month or so ago. They brought up the fact that there shouldn't be a "single" minimum amount. They explained that if you live in New York City, or California the minimum wage would not go as far as if you lived in a rural town in Mississippi. Makes sense.

Fromthe419

I read somewhere that is minimum wage from 1960 had kept up with inflation that it would be 22 dollars per hour right now. That fact is that inflation has eroded the dollar, Prior to the Fed one US silver dollar was worth 1 dollar, today one US silver dollar is worth 28.50....that's what the Fed has done for us. The 100 year charter of the Fed is up this year, anyone think we might want to revisit it's existence?

brutalyhonest

Who ever said raising the minimum wage will not hurt small business's, are TOTALY wrong. Raise the minimum wage to $10.10, and watch the unemployment rate soar. It will put every mom and pop convienient stores, the small clothing stores, individually owned business's that only have 5 or employees, out of bussines.. I own a small bussiness with 4 employees. A wage increase of that size would make me close my doors, and then put 4 employees on unemployment. We small business like myself, can only afford to pay so much. I'm not union...I can't negotiate a wage where my payroll is more than the business makes that week. Sharrod Brown...what are you thinking? Obviously, he has never owned a small business, or paid Workmans Comp Ins., or Unemployment Ins, or the other 50% of medicare and social security taxes that the EMPLOYER has to pay. He needs to to be voted out of office for even thinking of raising the min wage that high.
I dare him to go to the Statehouse, and say "This is what the business owners want to do" He has never asked me my opinion of anything....Nor has he ever returned a phone call, or replied to any of my E-mails. What a jerk.

arnmcrmn

Thank you....finally a poster with some sense.

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