Thanks to government mandates such as Obamacare, today’s minimum wage already effectively amounts to $10.46 an hour, Forbes.com reported.
"Proponents of more than doubling the current minimum wage of $7.25 appeared to have overlooked a simple fact. Thanks to government mandates such as Obamacare, today’s minimum wage already effectively amounts to $10.46 an hour. If we more than double the nominal minimum wage to $15, we actually will be requiring employers to pay $18.31 an hour," Forbes.com contributor Chris Conover writes.
"According to the latest Kaiser Family Foundation/HRET Employer Health Benefits Survey, the average cost of single coverage is $6,251," writes Conover, a Research Scholar at the Center for Health Policy and Inequalities Research at Duke University.
"For a full-time worker employed 2,000 hours a year, that alone amounts to $3.13 an hour. Under Obamacare, employers are mandated to provide affordable health coverage, meaning the amount that a full-time employee pays for single coverage cannot exceed 9.5% of cash compensation," he wrote.
"So even if we assume that employers pass along the maximum allowable premium cost to employees, under today’s minimum wage they still would have to set aside $2.44 hourly to pay for Obamacare-required health benefits," he wrote.
"Add to that the employer’s share of required payroll deductions for Social Security and Medicare (7.65%) and parallel contributions required for unemployment and workers’ compensation (another 3.1%). The result is $3.21 hourly added to the statutory minimum of $7.25 an hour–effectively boosting the minimum wage by 44%," he wrote.
"More than doubling the minimum wage to $15 hourly has one silver lining. Under Obamacare it means that employers would be able to pass along $1.43 hourly in premium costs for health insurance rather than only $0.69. But this is small consolation since the $15 minimum wage still would translate into an effective wage rate of $18.31," he concluded.
To be sure, others continue to lobby for a higher minimum wage.
California Lt. Gov. Gavin Newsom has touted the importance of raising minimum wage in his state, the Huffington Post reported.
"Economic growth has been a spectator sport for too many people. Wages are flat, salaries are flat and we need to step it up," he told "Real Time with Bill Maher."
"I can tell you as a former mayor of a city that had the highest minimum wage in the United States, the city has never done better economically," Newsom said.
"This notion that somehow raising the minimum wage is going to kill job growth and job creation is just simply untrue," continued Newsom, who is a former mayor of San Francisco. "It's factually incorrect," Newsom said.
"Anything you can do to support the middle class and the people who are struggling to join it is going to be good for the economy," Newsom said.
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