KING: MINIMUM WAGE INCREASE WILL HURT SMALL
BUSINESSES
WASHINGTON
- U.S. Congressman Steve King today released
the following statement regarding the U.S.
House vote to increase the minimum wage 41%,
by $2.10, the amount demanded by
Massachusetts Senator Ted Kennedy. The
legislation also contained inheritance tax
reforms and other tax changes.
"At a time
when we are working to continue the growth
of the economy and provide opportunities for
small businesses to create more jobs for
Americans, forcing a wage increase is the
absolute worst thing to do.
"This impacts
the small business owner the most, the
employers who create three out of every four
jobs in this country. When we artificially
raise wages, we will force small businesses
to either shrink their labor force, hiring
fewer workers, transition to more efficient
means of production, like automation, or
simply close their doors altogether.
"This will
price low-wage workers, the very people it
is intended to help, out of the labor
market.
"Labor is a
commodity like corn, beans, gold or oil and
its value should be established by supply
and demand in the marketplace, not by
congressional mandate. If it makes sense to
legislate a minimum wage, it also makes
sense to legislate a living wage. And, if
it makes sense to legislate a living wage,
it makes sense to simply legislate
prosperity. If Congress passed a law that
everyone had to make $1,000,000 a year there
would only be a handful of people with a job
in this country.
"Eliminating the Death Tax on small business
owners stands on its own merit. Small
business owners shouldn't have to sell the
family business to pay the federal
inheritance tax bill. I support full
elimination of the death tax. But, adding
inheritance tax reforms to a minimum wage
mandate hurts small business owners. They
should get the death tax relief they need
without the federal minimum wage mandate.
Small businesses are the backbone of our
economy."
