It begins: SeaTac businesses add “living wage surcharge” to cover minimum wage

Posted by: Phineas on June 6, 2014 at 2:01 pm

**Posted by Phineas

When discussing Seattle’s new, progressive –FAIR!!– $15 per hour minimum wage, I wrote that business owners had just a few choices in response:

Critics, on the other hand (and including your humble correspondent), argue that the laws of economics cannot be repealed by legislative fiat: raise the cost of labor, and businesses will be faced with a choice from among four options — pass the costs on to the consumer; reduce labor costs by cutting hours or whole jobs; eat the costs and accept lower profits; or cease doing business in that jurisdiction, either by moving or closing shop. 

Having seen some businesses hold off on hiring, while others moved out of Seattle, we now have an example of another option: pass the cost along to the consumer:

— Mark J. Perry (@Mark_J_Perry) June 5, 2014

 

And just look at that sales tax, too: 10.9%. Add the “living wage charge” and…

Yep. This is going to be a very interesting experiment.

via Twitchy

UPDATE: Just had it pointed out to me that SeaTac is not Seattle. My mistake; I’m not that familiar with Washington. Still, it can’t be all that long before Seattle itself sees these “living wage surcharges.” Also fixed the headline.

via:

— Craig S. Bell (@craig_s_bell) June 6, 2014

(Crossposted at Public Secrets)
 

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