Washington Business Winter-Spring 2014 | Page 50

washington outlook $15 Minimum Wage is Just the Beginning Richard S. Davis A labor-led progressive movement has seized on income inequality and the minimum wage to launch its political resurgence. Today’s supporters of a higher minimum wage routinely invoke income inequality, signaling their larger intent. The “15 now” chants bouncing off restaurant walls in Seattle and other metros are rallying cries for a resurgent labor movement. The wage boost is a hidden tax on employers, one that falls most heavily on low-margin small businesses, retailers and restaurants. see the wage hike as an easy way to deliver a benefit to constituents without raising taxes, they’re mistaken. The minimum wage is a hidden tax on employers, one that falls most heavily on low-margin small businesses, retailers and restaurants. a redefinition But, in a rare departure from the rule, when they say it’s about the money, it’s not. Not entirely. It’s about political control of the workplace. wrong diagnosis, wrong prescription In promoting a boost in the federal minimum wage — $10.10 is the magic number — President Obama cited a “dangerous and growing inequality and lack of upward mobility,” which he calls the “defining challenge of our time.” No, though union leaders and progressive activists want to make it the defining issue of the 2014 campaign season. The fever is contagious. Legislators in 30 states introduced measures this year to raise the minimum wage. In 21 states and the District of Columbia the mandatory minimum already exceeds the federal wage. Washington leads the pack at $9.32. The presiden 8