Representational image. ANI
New Delhi: Taxes will fall and minimum wages rise for residents in numerous states in the US as a variety of new laws take effect Sunday that could impact people’s finances and, in some cases, their personal liberties.
Minimum wage workers will get a pay raise in 23 states as a result of laws passed in previous years, some of which provide annual inflationary adjustments. The increases range from an extra 23 cents in Michigan to an additional $1.50 in Nebraska, where a ballot measure approved in November will raise the minimum wage from $8 to $9.50 an hour.
The gap continues to grow between the 20 states following the federal minimum wage of $7.25 an hour and the 30 others requiring more. The highest state minimum wage now will be $15.74 an hour in Washington — more than double the federal rate.
According to a report in the US News, there are nuances to minimum wages in certain states such as Ohio and Minnesota, which recognize different wage structures depending on the size of an individual employer.
Proponents of a higher minimum wage have cited cost-of-living increases since 2009, when the federal government boosted its benchmark to $7.25. Activists have regularly focused on a $15 per hour minimum wage as an acceptable standard.
Federal minimum wage
The federal minimum wage is $7.25 per hour. Though tipped workers and some farm and seasonal workers are paid less in many states, pay for the vast majority of hourly employees in the US is at least $7.25 per hour.
States without minimum wage laws
Alabama, Louisiana, Mississippi, South Carolina and Tennessee are five Southern states have not established state-level minimum wage policies, effectively defaulting to the national federal minimum of $7.25. Employers in these states must adhere to that federal benchmark and do not have the freedom to pay employees whatever they want.
How does it affect the economy?
Experts believe that higher minimum wages would benefit the economy. However, there’s a limit to how high wages can be raised without hurting employers and businesses. Economists say that consumers would have more spending power and would more actively contribute to the economy with a higher minimum.
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