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* The minimum wage bill has popped in the Senate and will be heard during an Executive Committee committee meeting at 2 o’clock this afternoon. Click here to read the bill. The Trib has some deets…
Lightford’s bill also proposes a tax credit that would help employers with 50 or fewer full-time employees offset some of the cost of raising wages. Employers would be able to deduct 25 percent of the cost in 2020, and the credit would then scale back annually until hitting 5 percent in 2025. It would phase out entirely for employers with more than five employees in 2028.
The credits wouldn’t be available to franchise owners whose businesses belong to chains with more than 50 workers.
Employers would be able to continue paying a lower wage to workers under 18 if they work fewer than 650 hours in a year.
The minimum wage for younger employees — currently $7.75 per hour — would increase to $8 on Jan. 1 and peak at $13 per hour in 2025.
…Adding… As a commenter points out, the Trib’s language is a bit sloppy. This isn’t a tax deduction. It’s a tax credit on wages paid above the current minimum wage.
posted by Rich Miller
Wednesday, Feb 6, 19 @ 1:24 pm
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Not sure about that $13 per hour for those under age 18. That’s pretty good loot for a kid in high school.
Comment by Demoralized Wednesday, Feb 6, 19 @ 1:32 pm
==Not sure about that $13 per hour for those under age 18. That’s pretty good loot for a kid in high school.==
That may be true, but if they do the same work, shouldn’t they get the same pay?
Comment by chuddery Wednesday, Feb 6, 19 @ 1:36 pm
“Not sure about that $13 per hour for those under age 18. That’s pretty good loot for a kid in high school.”
They won’t hit that amount for another six years, and a lot of working kids are using that money to help the family overall or save for college. It’s not just another xbox game.
Comment by Montrose Wednesday, Feb 6, 19 @ 1:36 pm
I recognize we’re talking about a narrow sample of the labor pool, but I’m not sure how I feel about drafting legislation to exploit teen labor considering that due to their age and inexperience with the labor market they’re already very easy to exploit by abusive employers that short hours, classify incorrectly, and so forth.
Comment by Anon Wednesday, Feb 6, 19 @ 1:38 pm
Tax credits, incremental increase over 7 years, and yet certain groups will still cry about it.
They should pay Mark Janus 8.25 an hour for his “services” .. Awful.
Comment by Anonymous Wednesday, Feb 6, 19 @ 1:39 pm
Does the legislation require people to actually show up and work in order to get paid?
Comment by Not It Wednesday, Feb 6, 19 @ 1:45 pm
I am 110% for this increase and think the ramp is too slow. Has there been any consideration on how to help tax exempt organizations with fewer than 50 folks? A tax credit doesn’t do them much good. Obviously, those with state contracts should get a rate hike, but a lot of tax exempt folks don’t do business with the state. No matter what, this increase needs to happen. it just feels like a bit of an oversight.
Comment by Montrose Wednesday, Feb 6, 19 @ 1:49 pm
What is the minimum wage for housemates of legislators?
Comment by Not It Wednesday, Feb 6, 19 @ 1:49 pm
The Trib description is a little sloppy, mixing language of deductions vs credits. They write that small businesses can deduct 25 percent…To be clear, the bill has a credit which is a dollar for dollar reduction in tax due. A deduction is a reduction of taxable income, which then reduces tax due only by the amount of the deduction times the tax rate.
Comment by Philo Wednesday, Feb 6, 19 @ 1:54 pm
===that’s pretty good loot for a kid in high school===
Cigarettes are expensive. Just kidding. Sort of. A fair amount of my high school wages (minimum wage was $3.35 then) went to cigarettes, beer and gas. The rest I just blew on junk I didn’t need.
Comment by 47th Ward Wednesday, Feb 6, 19 @ 1:57 pm
Does Fight for 15 move on to some other state now or do they re-brand as the Trample for 20?
Comment by City Zen Wednesday, Feb 6, 19 @ 1:57 pm
This phase-in proposal is hardly radical Bolshevism.
The minimum wage has been $8.25 since 2010.
Perhaps some of the Econ 101 posters here can point out any other costs of doing business that have not increased in nine years.
Or, identify any other costs of doing business that you can plan on for the next six years, and receive tax credits, to boot.
Comment by wordslinger Wednesday, Feb 6, 19 @ 2:01 pm
==Perhaps some of the Econ 101 posters here can point out any other costs of doing business that have not increased in nine years.==
At the moment, today, lately…gasoline. lol.
Comment by A guy Wednesday, Feb 6, 19 @ 2:08 pm
==Does Fight for 15 move on to some other state now==
The Fight for $15 movement is an advocacy group for increasing the federal minimum wage. So they are already in the other states.
Comment by Da Big Bad Wolf Wednesday, Feb 6, 19 @ 2:11 pm
==Trample for 20==
I think “ask for $20” would be a good idea in some locations where the unemployment is low.
Comment by Da Big Bad Wolf Wednesday, Feb 6, 19 @ 2:18 pm
So how much is enough. Will $15 be the max minimum or will the state build in escalator clauses? Also, what about the impact on non-profits? Will the state raise their payments to cover the increased staff costs? Wages aren’t usually determined on the basis of what people need to live but on the impact of the cost of labor and how much can the market bear. This state hasn’t shown any real capacity to manage its own finances so to see legislators move to imposing this standard on business isn’t very comforting.
Comment by NeverPoliticallyCorrect Wednesday, Feb 6, 19 @ 2:20 pm
**Has there been any consideration on how to help tax exempt organizations with fewer than 50 folks? A tax credit doesn’t do them much good.**
The tax credit is structured like the EDGE credits, where an employer can keep some of the employees’ tax deductions. It is NOT an income tax credit.
In turn, this allows non-profit employers to also claim the credit.
Comment by SaulGoodman Wednesday, Feb 6, 19 @ 2:22 pm
“Perhaps some of the Econ 101 posters here can point out any other costs of doing business that have not increased in nine years”
Many business expenses are commodities - that is they are essentially same product - think utilities, insurance, roofs, parking lots …. and providers of those products do compete to provide businesses with the lowest cost option. Wages are not commodities - each job and the specific task required are hugely variable. Market based wages will reflect regional supply and demand conditions that are specific to local market conditions and vary by industry and skills required. Gov’t enforced minimum wages are arbitrary.
Comment by Donnie Elgin Wednesday, Feb 6, 19 @ 2:26 pm
“So how much is enough”
I hate questions like this one. Will we talk about raising the minimum wage again down the road? Yup. Is that a reason we should resist doing it now? Nope.
Comment by Montrose Wednesday, Feb 6, 19 @ 2:29 pm
==Wages aren’t usually determined on the basis of what people need to live but on the impact of the cost of labor and how much can the market bear.==
We’ve had a minimum wage in this country since 1938.
Comment by Demoralized Wednesday, Feb 6, 19 @ 2:33 pm
==Will $15 be the max minimum or will the state build in escalator clauses?==
You can read the post to find out?
Comment by Arsenal Wednesday, Feb 6, 19 @ 2:37 pm
==The Trib description is a little sloppy, == No sloppier than the language in the bill. Does anyone claim to understand the computation of the credit?
Comment by Whatever Wednesday, Feb 6, 19 @ 2:37 pm
==I think “ask for $20” would be a good idea in some locations where the unemployment is low.==
Trample for 20 sounds better. Or Inquisition for Infinity, as the low bar keeps moving for these folks anyway. But I’m pretty sure there are efforts under way in SF and NY to go above and beyond $15.
I’m still waiting for the pro-hike folks to expound on the ever decreasing reductions in financial assistance workers will need as these new rates take effect.
Comment by City Zen Wednesday, Feb 6, 19 @ 2:37 pm
It’s the best way to increase poverty ever invented. Raise the cost of labor to the point where it’s too expensive. Replace the high school student with a touchscreen. Reduce employee hours. Eliminate busboys. Let the wait staff bus tables.
Seriously, has no one on the Democratic side of the aisle read the studies of what happened in Seattle when they raised the minimum wage to $15?
Comment by Downstate Illinois Wednesday, Feb 6, 19 @ 2:40 pm
No Downstate, no they haven’t. Or, maybe they read it and just don’t care.
Comment by Anonymous Wednesday, Feb 6, 19 @ 2:46 pm
==Trample for 20 sounds better==
Why? Shoes that trampled are going to be all scuffed and torn. If you go to a job interview you and you ask someone to take a chance on you, maybe tweak the asking price higher, you need to at least wear presentable shoes. It’s a sign of respect.
Comment by Da Big Bad Wolf Wednesday, Feb 6, 19 @ 2:47 pm
Good on the proposed tax credit to help smaller businesses.
America gave multibillion-dollar corporations a 21% income increase with the corporate tax cut. We give corporations like Foxconn and Amazon billions in tax breaks for doing what so many others do, opening shop. What kind of Draculas are out there, that they don’t want to help those at the bottom in earnings, in this context?
Comment by Grandson of Man Wednesday, Feb 6, 19 @ 2:51 pm
I’m frankly appalled at this comment section. 21 comments so far, and not one claiming that all business owners are immediately moving every job to Indiana because “liberals”? Highly disappointed
Comment by Lester Holt’s Mustache Wednesday, Feb 6, 19 @ 2:51 pm
~I’m frankly appalled at this comment section. 21 comments so far, and not one claiming that all business owners are immediately moving every job to Indiana because “liberals”?~
But we do have arguing like a child:
“Does Fight for 15 move on to some other state now or do they re-brand as the Trample for 20?”
It looks like we might be having a lot of fun in the next four years, watching the phony crying and hyperbole of those who are either super-rich or their media shills. We need it, after Rauner and the depression and damage he caused.
Comment by Grandson of Man Wednesday, Feb 6, 19 @ 3:12 pm
“…. if [those under age 18] do the same work, shouldn’t they get the same pay?”
Of course, if they can get hired.
Comment by CapnCrunch Wednesday, Feb 6, 19 @ 3:23 pm
Downstate - if we could just let employers pay their employees nothing then everyone would be employed /s.
Comment by ike Wednesday, Feb 6, 19 @ 3:43 pm
Oh the wailing and gnashing of teeth of the privileged owner investor class.
Comment by Honeybear Wednesday, Feb 6, 19 @ 3:46 pm
==Seriously, has no one on the Democratic side of the aisle read the studies of what happened in Seattle when they raised the minimum wage to $15?==
You must be referring to the now-famous study that claimed the wage hike lessened hiring and hours worked, which was also the same study that completely excluded jobs at any company that operates both in and out of Seattle.
The numbers coming in during the last six months are showing that hiring was not significantly affected by the increase. Claiming you are the only one interested in evidence is not constructive.
Comment by Hyde Parker Wednesday, Feb 6, 19 @ 3:54 pm
Downstate - is there a study that unemployment as increased drastically since the Seattle wage increase?
Or are you just repeating some talking point that you have heard before?
Comment by ike Wednesday, Feb 6, 19 @ 3:56 pm
“Market based wages will reflect regional supply and demand conditions that are specific to local market conditions and vary by industry and skills required. Gov’t enforced minimum wages are arbitrary.”
Market based wages are also arbitrary, unless the market = God, which it doesn’t.
It might interest you to know that ALL of the founding fathers, Adam Smith, Abraham Lincoln, Karl Marx and nearly everyone in America prior to the Civil War believed in the labor theory of value. According to this theory, on family could only produce so much wealth, and therefore, great wealth inequality could only happen in an aristocratic political arena in which the wealthy manipulated the system to take the value that was produced by others. This is why they, for instance, passed the Homestead Act. The only way to give each the full reward of his and her labor, was to make him or her a sole proprietor or partner.
There is no going back to a world without large corporations. But the thought is still important. The American Revolution was fought to prevent precisely the aristocracy of wealth we have now enshrined in so-called “free” markets. But remember, a corporate charter is a special privilege granted by a government. Unless you want to pay the personal tax rate, I suppose you will choose to accept a charter of incorporation that grants you a lower rate.
But We the People are fully entitled to dictate the terms of your special privilege. In exchange for a lower tax rate, pay your people a living wage. Never mind that you should take pride in doing so already. We’ve already established what kind of person you are. Obviously the wealthy must be compelled to do justice, love kindness, and walk humbly . . .
Comment by histprof Wednesday, Feb 6, 19 @ 4:03 pm
==Seriously, has no one on the Democratic side of the aisle read the studies of what happened in Seattle when they raised the minimum wage to $15?==
Perhaps they did and are trying to avoid what happened there. In Seattle wages were increased almost 37% in less than a year. The Illinois bill calls for a 21% increase the first year and 10% and smaller increases in future years. In Seattle the wage jumped from 9 something to 15 in less than two years. In Illinois it will take five years to reach $15.
Comment by G'Kar Wednesday, Feb 6, 19 @ 4:05 pm
Reaganomics/supply side/trickle-down/voodoo economics (your choice of what term you prefer) has only produced stagnant wages for middle class families.
Comment by ike Wednesday, Feb 6, 19 @ 4:13 pm
–studies of what happened in Seattle–
“They Said Seattle’s Higher Base Pay Would Hurt Workers. Why Did They Flip?”
https://www.nytimes.com/2018/10/22/business/economy/seattle-minimum-wage-study.html
Comment by Bigtwich Wednesday, Feb 6, 19 @ 4:21 pm
Government and unions are among the best protectors of workers. That’s why billionaires like the Rickettses hate them so much. The bill is on the way to the Senate floor and has Madigan’s support. Looking real good.
Comment by Grandson of Man Wednesday, Feb 6, 19 @ 4:28 pm
It would be nice to see the Governor’s Office/GOMB put out some numbers showing the impact on funds spent on public assistance programs as a result of increasing the minimum wage. I’m guessing a decline in demand, but would a tax credit cost the same as what we would have spent on Medicaid/SNAP, etc.?
It should be fairly easy to get a minimum wage bill passed and signed into law, but there needs to be some efforts to “sell” this plan to the naysayers.
Comment by Reserved Wednesday, Feb 6, 19 @ 4:52 pm
Considering that the lowest level jobs are at 10 or 11 all ready downstate the credit is a real
Was it to small business. It will help them compete for employees against larger businesses.
Comment by Not a Billionaire Wednesday, Feb 6, 19 @ 10:17 pm
“Downstate - is there a study that unemployment as increased drastically since the Seattle wage increase?”
There are studies that say it didn’t.
“https://www.bloomberg.com/news/articles/2018-09-06/higher-minimum-wage-boosts-pay-without-reducing-jobs-study-says
Comment by Anonymous Thursday, Feb 7, 19 @ 6:23 am
With Missouri headed to 12 the differential will be no final for small business.
Comment by Not a Billionaire Thursday, Feb 7, 19 @ 7:02 am
Ike, so you are saying it is better for money to be in the hands of government instead of the hands of consumers???
SMH
Comment by Anonymous Thursday, Feb 7, 19 @ 7:22 am
$31,000 a year to flip burgers? Ridiculous. If you want to make more money, go to a trade school or college and get a better job. This will only force companies to automate more jobs at a quicker pace and more small businesses to close.
Comment by concerned citizen Thursday, Feb 7, 19 @ 7:23 am
This will cause many summer jobs to dry up. And others thinking of starting a business in Illinois to start twice. Will put additional financial pressure on school district and park districts and other governmental bodies as the amount of governmental support will need to increase to cover the extra spend. Increasing this gradually will help, but with this and minimum wages for teachers will put a ton of pressure on many smaller downstate districts that are struggling to get by as it is.
Comment by Tim Thursday, Feb 7, 19 @ 7:32 am
“$31,000 a year to flip burgers?”
Bruce Rauner made $279 million in 2015 and 2016 while purposely damaging Illinois and driving up debt, in order to drive down middle class incomes. Multibillion dollar corporations got a huge, no strings attached income boost from the corporate tax cut. The super rich got a big estate tax cut.
But go ahead, scream about raises for lower income workers and see where that gets you politically.
Comment by Grandson of Man Thursday, Feb 7, 19 @ 7:48 am
Grandson of the man, you made my point. They don’t have to be “lower income workers”. Think for yourself, get an education, make a better opportunity for yourself. You want them to rely on the government to do everything for them.
Comment by concerned citizen Thursday, Feb 7, 19 @ 8:14 am
I’m not saying an increase isn’t out of line; but I will say that all state grants and fees should be increased proportionately. If the state can’t afford to do that; why should anyone assume businesses can?
Comment by logic not emotion Thursday, Feb 7, 19 @ 8:19 am
“Think for yourself, get an education, make a better opportunity for yourself.”
If everybody did that, who would do the lower-paying jobs? Many do go to school and try to better themselves. We giveve billions of dollars more to those who already have billions and we’re sweating a pay rise for lower income workers? I don’t think so, and neither do many others.
“You want them to rely on the government to do everything for them.”
If they’re working, then government isn’t doing everything for them. In fact, government may do less for them because their incomes will cause them to lose public assistance or have it diminished.
Comment by Grandson of Man Thursday, Feb 7, 19 @ 8:29 am
People considering starting new businesses to think twice.
Comment by Tim Thursday, Feb 7, 19 @ 8:53 am
==If they’re working, then government isn’t doing everything for them. In fact, government may do less for them because their incomes will cause them to lose public assistance or have it diminished. ==
Ding Ding!! This will also give them enough money to invest in the type of education and job training for which @concerned citizen is advocating.
Comment by supplied_demand Thursday, Feb 7, 19 @ 9:28 am