Dear Friends,
I received a number of calls, emails, and letters from constituents on the proposed increase of the minimum wage. The bill was debated on and passed on Friday, so I wanted to update you and let you know I voted “no” and let you know why I voted that way.
After passing the largest tax increase in three decades two weeks ago, Democrats continued their blitz of proposals that will damage our improving economy on Friday by passing a drastic minimum wage increase. After imposing sky-high tax increases on tobacco, alcohol, and sports memorabilia, they're now working to pay for it by increasing the minimum wage.
Study after study by non-partisan organizations show that minimum wage increases reduce entry-level job opportunities. For every 10% increase in the minimum wage, there is a 1-3% decrease in employment opportunities for low-skilled workers, a vast majority of which are young first-time job seekers. The Democrats are proposing a 31% increase over the federal minimum, which could mean a 3-9% drop in job opportunities for the very people they are seeking to help.
If this proposal is signed into law, we will be dramatically increase labor costs for businesses large and small alike. This is extremely damaging to small businesses in particular that can't keep up with the big-box stores like Wal-Mart who can afford to increase their wages. It means fewer jobs for small-town hardworking Minnesotans who work at the small businesses that drive our local economies.
This proposal leaves businesses with a tough choice: reduce hours for their employees, cut employees altogether, or raise prices on the goods and services hardworking Minnesotans are paying for. None of these outcomes is positive for anyone in our state.
I received hundreds of calls, emails, and letters that overwhelmingly opposed raising the minimum wage. This will have real consequences for hardworking Minnesotans across the state in the form of fewer jobs, reduced hours, and higher costs.
We are still waiting on conference committees to finish their work on the budget bills, at which point they will be sent back to the House and Senate to be adopted or rejected, and ultimately passed and sent to the Governor. I will keep you updated as the final budget bills take shape, and welcome your input once the bills return to the floor. If you have thoughts on the final budget bills, or any of the legislation coming through in the final weeks of session, please contact my office at 651-296-2451 or rep.jim.newberger@house.mn. Thank you for the continued privilege of serving you and our district here in Saint Paul.
God Bless,
Jim