“Today the Massachusetts State Senate
passed a major increase to the state’s minimum wage rate, and although a wage
increase was warranted, I fear that an increase of this magnitude will prove
onerous to the economy and detrimental to small businesses throughout the
Commonwealth by stifling job growth. A survey conducted by the
Massachusetts Chamber of Commerce found that 85% of businesses have reported
that they will be negatively impacted by the increases to the minimum wage, and
without careful consideration to assist employers, this bill will have done a
great injustice to those who provide the necessary jobs that stabilize our
local economies. The plan passed today is an example of taking one step forward,
and several steps back in terms of competitiveness and job creation.
Rather than relying solely on a
highest-in-the-nation minimum wage increase, which can’t effectively lift
families out of poverty, Senate Republicans have consistently advanced a carefully
crafted plan. The Minority Party offered, quite simply, a better
plan. A plan that did not focus on Massachusetts having the highest
minimum wage in the nation, but a plan that would have eased the burden of
higher business expenses with a balanced and fair approach to encourage job
growth and generate economic competitiveness that would have assisted the
750,000 residents currently living in households below the federal poverty
threshold; sadly, the Senate chose a different path. Highlights of the
Senate Republican plan include:
• Doubling the anti-poverty and work incentive program called the Earned Income
Tax Credit from 15% to 30%;
• Providing incentives to employers who provide low wage earners with health
insurance;
• Increasing the minimum wage from $8 to as much as $9.50 in two years; and
• Requiring the Secretary of Labor and Workforce Development to recommend
appropriate minimum wage rates following a review of their effectiveness in helping
low wage workers and impact on job creation and economic competitiveness.
Although the legislature has missed a
prime opportunity for a balanced and comprehensive approach to help low-wage
earners without jeopardizing the jobs they need, the Senate Republican Caucus
will continue to fight for measures that will benefit all of the state’s
citizenry rather than pitting some against others, and will continue to fight
for productive measures to help those who work every day and continue to
struggle with poverty.”
