By Tom Latek
Kentucky Today
Legislation is before the 2023 General Assembly that would raise the minimum wage with staggered increases over the next five years, bringing the minimum wage up to $15 an hour by July 2028.
The bill, Senate Bill 32, is sponsored by Sen. Reginald Thomas, D-Lexington, who said Kentucky’s minimum wage has remained at $7.25 per hour since 2009.
Sen. Reginald Thomas, D-Lexington, introduced a bill that would raise Kentucky’s minimum wage from $7.25 to $15 an hour by 2028. (LRC photo)
“Kentucky’s working families are struggling to keep up with the rising costs of basic necessities, while wages have remained stagnant. Incremental minimum wage increases are crucial to ensure that hardworking Kentuckians can earn a livable wage and build a brighter future for themselves and their communities.”
Sen. Thomas noted that other states, such as Arkansas and South Dakota, have enacted proposals gradually increasing their minimum wage over time.
In Arkansas, the minimum wage has been increasing since 2019, leading to higher wages for thousands of workers and improved economic conditions for local businesses. South Dakota implemented similar legislation in 2015 and the state’s economy has remained strong, with low levels of unemployment and a thriving small business sector. He cited them as just two examples demonstrating how an incremental minimum wage increase can be successful, leading to positive outcomes for workers and businesses alike.
“Raising the minimum wage in Kentucky would not only improve the financial well-being of low-wage workers and their families, but also have a positive ripple effect throughout the state’s economy,” Thomas stated. “When workers earn a livable wage, they have more purchasing power, which can lead to increased consumer spending and a boost in local businesses. This in turn can create more jobs and help reduce poverty and inequality, ultimately strengthening Kentucky’s economy and its people.”
SB 32 would also allow for individual cities to enact their own minimum wage laws. Sen. Thomas pointed out how this would allow for more control at the local level.
“In Frankfort, we like to talk about how important decisions that affect a community should be made locally. What better way than giving local governments the option to raise the wages for their community?”
SB 32 has been assigned to the Senate Appropriations and Revenue Committee, but no hearing has been scheduled. Similar legislation has been introduced over the past several years, without success.
What’s better for workers than a higher minimum wage? A tax on vacant commercial land and vacant shop-fronts. Whereas a higher minimum wage may discourage hiring, a vacant-commercial-property tax makes property owners seek commercial tenants, who in turn will need workers, leading to higher market wages and more secure employment.
What’s better for business than a lower minimum wage? A general tax on vacant land and unoccupied buildings. A lower minimum wage reduces the spending powers of prospective customers, and makes it harder for prospective employees to afford housing within a manageable distance of your business, whereas a vacancy tax on nearby *residential* property keeps it populated with prospective customers and workers, and a vacancy tax on nearby *commercial* property keeps it populated with complementary businesses that will attract foot traffic to *your* business.
Notice that a vacant-property tax is meant to be AVOIDED, not paid. Better still, avoidance of it would involve economic activity, expanding the bases of other taxes and allowing their rates to be reduced, so that everyone else would pay LESS tax!
Driving up minimum wage will drive up lots of cost it all depends on your goal in life factory life , restaurant life , So the folks making a good wage will be paying more for their BiG Mac and their latte coffee .