The Center of the California Enterprise Zone Information Universe

State Minimum Wage Gets a Raise – Los Angeles Times

The Los Angeles Times reports on the Governor’s signing of AB 1835 to raise the minimum wage. In the article Jean Ross of the California Budget Project is quoted as a proponent of the increase:

But raising the minimum wage by nearly a fifth of what it is now will make a big improvement in the lives of low-income adults, said Jean Ross, director of the California Budget Project, a policy group that studies conditions for poor and middle-class people.

Leaving aside the economics debate over minimum wage increases, what is the effect of the increase on the Enterprise Zone program? I’m afraid the very same people who are happy about an $8 an hour wage will be distressed by the tax credit consequences. The famous calculation always cited when referring to the EZ tax credit is that an employer can claim over “$31,000″ for each qualified employee. Using the same formula that generates that number, the new minimum wage will increase that credit to over $37,000.

Leave a Reply

You must be logged in to post a comment.

Follow maxshenker on Twitter

Receive By Email

Enter your email address and receive the EZ Policy Blog by email.