On July 24th the Federal minimum wage will increase from $6.55 to $7.25 per hour. Adjusted for inflation, the minimum wage is lower now than when I was in high school. I’ve worked minimum wage jobs at a fast-food joint, a pizza place, and as a cashier in a chain drug store, but only during high school and college. I can’t imagine trying to support myself, let alone a family, on those wages.
The wage increase won’t affect Massachusetts residents, as our state has a minimum hourly wage of $8.00.
Everyone, even those making minimum wage, will be affected by the increase in Massachusetts sales tax from 5.00% to 6.25% as of August 1st. Sales tax affects lower income folks disproportionately, as they spend a greater percentage of their income on necessities. Food is exempt from the tax, but other essentials such as toothbrushes, laundry detergent, and car parts are not. If we have to raise taxes on the general population, I’d rather see an increase in the income tax. Of course I’m amazed that a (normally) progressive state such as Massachusetts has a flat income tax. The guy making minimum wage is paying the same rate as the hedge fund billionaire. Except, of course, the billionaire can afford lawyers to find tax loopholes.
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