As residents see tax refunds or payments flow in or out of their checking accounts, many low-earning Connecticut residents can expect to see tax refunds based on the Earned Income Tax Credit. The EITC supplements the wages of low-income workers by sending them a check after they file their tax ...
Tax on Low-wage Jobs: Fewer Jobs, Higher Prices
The Yankee Institute released a policy brief today, Tax on Low-wage Jobs: Fewer Jobs, Higher Prices.
Yankee President Carol Platt Liebau issued the following statement on the proposal to tax employers across Connecticut:
“Taxing businesses that either can’t or don’t pay $15 per hour guarantees only one thing: Fewer jobs for the people who need them most. As we’ve seen, after Seattle passed a $15 minimum wage, businesses have been forced to shut down or move out. When that happens, employees aren’t better off – they’re out of a job.”
“Low-wage jobs aren’t the ideal for anyone. But often, they are the first step on the ladder of opportunity, or an important supplement to a family’s income. And making it more expensive for employers to provide these jobs will only result in more automation.”
“No matter what the legislature does, big companies will be fine – whether they cut jobs, automate, or follow the lead of so many other businesses and leave Connecticut altogether. But employees will suffer if this bill passes, and that is wrong.”
“And it’s not just employees who will be hurt. If this measure passes, anyone who shops at the stores targeted by it will end up paying higher prices as a result. One reason these stores thrive is that they offer struggling consumers a better value for their hard-earned dollars.”
“Perhaps this bill’s greatest flaw is punishing job-providers for the failure of government programs to lift people out of poverty. Programs like Medicaid and food stamps help people survive in poverty, rather than helping them escape it.”
“As always, the Yankee Institute stands ready to work with everyone willing to reform and modernize public policies, so that all Connecticut’s people can move forward together.”
Tolls can be user fees, depending on how they are conceived and implemented. As proposed in Connecticut, however, they will not be user fees, but rather a massive wealth transfer: in short, another giant tax increase. Politicians trying to hide a huge tax increase under another – any other – label is depressing, but not surprising. What is ...