King: Minimum Wage Increase Will Hurt Small Business
For Immediate Release
KING: MINIMUM WAGE INCREASE WILL HURT SMALL BUSINESSES
Washington, D.C. – 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.”