In response to classmate Daniel J. Velasquez blog on the increase of minimum wage to $15 an hour I have to say I completely agree. As an employee of a very small business this increase will break us. People do not realize how much business spends on wages and taxes for their employees. It is the biggest expense when running a business. Labor costs are then funneled into the cost of products, which means the cost of living will spike to astronomical levels. The increase in wages also increases the amount of money business pay for taxes and employees. Raising the wage raises what tax bracket you belong in which means you won’t be getting as much money as you think you will. I, for one, do not want to spend $15 dollars or more for a McDonald’s hamburger or $5 for a soda to cover the cost of doubling the minimum wage.
My family also owns a small business and the increase in wage could mean that our sole source of income will be gone. Most small businesses are barely making it by since the recession. By forcing them to pay such a high amount in wages all the jobs we have been trying to create in this country are going to go away as people are forced to shut their doors. This will send business owners into the job market further increasing the competition to find employment. This increase is going to send our communities into financial ruin.