County Residents
The county
residents is another group affected by the raise in minimum wage in Montgomery
County, MD. Although the residents include workers and business owners, the
primary reason why they hold stake in the raise of minimum wage is the possible
raise in other prices. Since minimum wage has risen, prices in stores may also
rise. The stakeholders also have to worry about possible tax increases since
the county is requiring higher pay for workers.
Since employees are being paid more by their employers, there is a possible spike in the prices of groceries, clothing, novelty items, hardware, technology, and any other items a person can find in a local store. These are found mostly in local businesses that do not rely on major headquarters possibly in another state to pay their employees. Small businesses that focus on personal services, such as nail and/or hair salons, shoe shiners, and massage and/or spa businesses may also increase their prices. If these businesses increase their prices, the county residents will have to pay higher costs and spend more of their income then they normally would had minimum wage not gone up. Customers at my store will now be paying a dollar more for half a dozen cupcakes. Although a dollar does not seem like a lot of money, dollars do add up and customers expect to pay the lower price they previously paid.
Another issue the county residents face is the increase in taxes taken out of their normal paychecks. The residents will have to pay more in their county taxes because the residents are making more money. Not only are the workers taxes raised, but so are the business' taxes. However, the percent should still be the same. This will cause the raise in minimum wage to seem like an insignificant amount at first. Over time, the money left after taxes will increase and show greater results.
Some businesses may even have to shut their doors for good. This is not proven yet, but with all of the rising expenses related to owning a business in Montgomery County, there may be some shut downs. This would be unfortunate for all of the people involved with the business. To the lesser extreme, the downsizing that may take place in business would affect the residents. Services may not be completed as quickly and workers may be without jobs.
County residents are affected positively and negatively by the raise in minimum wage because although they are paid more, if they were being paid minimum wage, the costs in the county may raise.
Click here for a short video on Montgomery County's minimum wage raise.
Since employees are being paid more by their employers, there is a possible spike in the prices of groceries, clothing, novelty items, hardware, technology, and any other items a person can find in a local store. These are found mostly in local businesses that do not rely on major headquarters possibly in another state to pay their employees. Small businesses that focus on personal services, such as nail and/or hair salons, shoe shiners, and massage and/or spa businesses may also increase their prices. If these businesses increase their prices, the county residents will have to pay higher costs and spend more of their income then they normally would had minimum wage not gone up. Customers at my store will now be paying a dollar more for half a dozen cupcakes. Although a dollar does not seem like a lot of money, dollars do add up and customers expect to pay the lower price they previously paid.
Another issue the county residents face is the increase in taxes taken out of their normal paychecks. The residents will have to pay more in their county taxes because the residents are making more money. Not only are the workers taxes raised, but so are the business' taxes. However, the percent should still be the same. This will cause the raise in minimum wage to seem like an insignificant amount at first. Over time, the money left after taxes will increase and show greater results.
Some businesses may even have to shut their doors for good. This is not proven yet, but with all of the rising expenses related to owning a business in Montgomery County, there may be some shut downs. This would be unfortunate for all of the people involved with the business. To the lesser extreme, the downsizing that may take place in business would affect the residents. Services may not be completed as quickly and workers may be without jobs.
County residents are affected positively and negatively by the raise in minimum wage because although they are paid more, if they were being paid minimum wage, the costs in the county may raise.
Click here for a short video on Montgomery County's minimum wage raise.