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Tuesday, April 02, 2019

Opinion: New $15 minimum wage raises hard issues left out of debate

By Richard D. Douglas
For MarylandReporter.com


Here is a question for the Maryland General Assembly: Will Maryland’s higher minimum wage also create pressure to increase Davis-Bacon and other regional wage schedules? How will that affect the state’s construction budgets and Maryland taxation?

Several possible consequences of the General Assembly’s decision to hike Maryland’s minimum wage to $15 over Governor Hogan’s veto have been left out of the public debate, at least so far. Here are thoughts on a few of them.
More independent contracts, fewer employees

The Maryland General Assembly’s rush to $15 will probably increase business demand for strategies to classify more Maryland workers as independent contractors (“IRS Form 1099 workers”) instead of employees (“IRS Form W-2 workers”). Why?

Because businesses are not obliged to pay the $15 hourly wage to 1099 workers. Many businesses will be forced by the new minimum wage to beat the bushes for ways to stay profitable, and indeed, to stay in business at all. 1099 workers may be an attractive option.


7 comments:

  1. Just another example of Democrats rushing through laws that they have never investigated all of the counter productive results. All they see is votes and not consequences of their stupid desires that destroy our economy.

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  2. How about cutting hours to classify employees as part time, then, drop their insurance. This will offset the $15 per hour!

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  3. democrats in this state are a special kind of stupid...AOC complained about $7 crossiants at an airport. hell come to maryland soon to be home of the $20 burger.

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  4. Dumbocrats trying to bend the rule of simple economics.

    HINT: It doesn't work!

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  5. Wouldn't regular employees all over the state be further ahead if the Dem legislature gave them a book deal with UMMS? Asking for a friend.

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  6. Don't you worry, you all will start to lose your jobs, like even at MC Donald... They will not pay you that becasue it takes form profit, the stuff companies need to keep being a company... Then when people leave the state or lose their jobs and the tax base takes a hit, best believe taxes will rise again...

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  7. You can take whatever strategy you care to take as loopholes will be closed. If you run a business in MD you will pay your employees a living wage. It's simple really.

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