MINIMUM WAGE BILL MOVES FORWARD BUT HITS MAJOR SNAG

Earlier this week SB 3 (Leno; D-San Francisco), a measure that would raise California’s minimum wage to $13 per hour, flew through the Assembly Labor Committee on a party line vote.  This is above and beyond a 2013 state law that automatically raises minimum wage to $10 in 2016.

However, the California Department of Finance (the Governor’s fiscal office) has come out against the additional hike to $13, stating that “This would lead to slower personal income growth, and an anticipated negative impact on taxes collected, especially since the tax structure in California is highly progressive and lower income individuals pay little to no income taxes.”

Although the Department is not speaking directly for the Governor in this instance, many see this as a harbinger of a veto from the Governor, should the bill make it to his desk.

Click here to read more about the issue.

 

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