Mandated wage increases hurt businesses and low-wage earners
Despite insight from experts and myths we’ve debunked over time that show the negative impact of mandated wage hikes on employers, consumers and even the low-wage workers that proponents claim to support, some elected officials and the Wolf administration continue to ignore these facts even though the legislation does nothing to address the income and skills gaps that are causing real problems for the Commonwealth.
Supporters of mandated wage hikes don’t take into account that other states don’t have our tax climate – with a 9.99 percent Corporate Net Income Tax rate – among other uncompetitive taxes. They’re also not thinking of our history and what happened the last time the minimum wage was raised in Pennsylvania, when employers (especially small businesses) showed reductions in hiring, less investment and even job cuts.
The PA Chamber believes that a better alternative to helping low-wage workers is a focus on career oriented job training, where educational institutions and employers work together to prepare students and workers for rewarding jobs. There’s also the option of a Earned Income Tax Credit to spread the costs of financial aid for those in poverty over the entire taxable population, without demanding that employers exclusively shoulder the burden. The PA Chamber will continue to promote these options while standing firm against an unwarranted minimum wage increase.