Gov. Ned Lamont issued a reminder that the state”™s minimum wage will increase from the current rate of $14.00 per hour to $15.00 per hour beginning June 1.
The new increase of the minimum wage is the fifth of five hikes that began in 2019 when the then-rate of $10.10 per hour was raised to $11.00 per hour. It has since upticked by one dollar with each successive year.
“No one should work a full-time job and live in poverty,” Lamont said in a statement. “For too long, while the nation”™s economy grew, the income of the lowest earning workers stayed flat, making existing pay disparities even worse and preventing hardworking families from obtaining financial security. That is why four years ago I signed a law implementing several gradual increases in the minimum wage and then ultimately connecting it to the employment cost index. This is a fair, modest increase, and the money earned will be spent right back into our own economy and support local businesses.”
What’s better for workers than a higher minimum wage? A tax on vacant land and unoccupied premises. A higher minimum wage discourages hiring. But a vacancy tax on residential property makes the owners get residential tenants (and set the rents within reach of wages), while a vacancy tax on commercial property makes the owners get business tenants, who in turn will need workers, leading to higher *market* wages and more stable jobs.
What’s better for business than a lower minimum wage? A tax on vacant land and unoccupied premises! A lower minimum wage cuts the spending power of prospective customers, and makes it harder for prospective employees to afford housing within a manageable distance of your business. But a vacancy tax on nearby residential property keeps it populated with prospective customers and workers, while 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. It’s not meant to be paid. Moreover, avoidance of it would generate economic activity, expanding the bases of other taxes and allowing their rates to be cut, so that both workers and businesses would pay LESS tax!