Minimum Wage Increase & Tax Changes

new tax changes

On May 25, President Bush signed a bill that included a minimum wage increase as well as a few tax provisions.

Federal Minimum Wage Increased: The federal minimum wage will increase to $7.25/ hour over the next two years. The federal minimum wage has been at $5.15/hour since 1997. Under the new law, it will increase to $5.85 next month. It will then increase to $6.55 next July and to $7.25 in July 2009. Of course, some states are already far ahead of the curve on minimum wage rules, but for those that aren’t, minimum wage employees can expect some pay raises in the near future.

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One Response to Minimum Wage Increase & Tax Changes

  1. HMG says:

    It will be interesting to see the effects of the minimum wage increase on the economy.
    I remember back from one of my first Economics classes that a low minimum wage leads to low unemployment since employers can hire more people. I wonder if the rise in the minimum wage will lead to a rise in the unemployment rate?

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