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Connors, Rumpf & Gove

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Connors, Rumpf & Gove: Small Businesses & Seniors Will Be Hit Hard by Minimum Wage Increase

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Imposing more state mandates will have a chilling effect on New Jersey’s economy warned the 9th Legislative District delegation, following the announcement of what is the latest in a string of anti-small business policy proposals.

Connors, Rumpf and Gove noted that plans by Democrats to nearly double the minimum wage to $15/hour would result in price increases that hurt fixed-income seniors. (©iStock)

The statement from Senator Christopher J. Connors, Assemblyman Brian E. Rumpf and Assemblywoman DiAnne C. Gove comes in reaction to the recent announcement of a joint state-federal effort by New Jersey elected officials to raise the minimum wage to $15 per hour.

The delegation questioned how the state could be considering nearly doubling the minimum wage, which could very well drive up the cost of goods, when seniors recently learned they won’t be receiving a cost-of-living increase in their social security checks this year.

Outlining their consistent stance on the minimum wage issue, Connors, Rumpf and Gove issued the following joint statement:

“Pure and simple, raising the minimum wage will discourage small businesses from operating and opening in the state. Imposing this state-mandate on businesses couldn’t come at a worse time as towns are working hard to bring in desperately needed ratables to control property taxes for local residents.

“Lost in the debate is the likely harsh impact on middle class small business owners and seniors. On the surface, raising the minimum wage seems compassionate. In reality, it disparately impacts small businesses as opposed to large corporations that have greater financial resources and mobility.

“Moreover, seniors can’t afford any potential price increases in the costs of goods resulting from a minimum wage increase. Seniors won’t be receiving a cost-of-living increase in their Social Security checks meaning they’ll have less disposable income. A trip to the local department store becomes more expensive precisely when they can least afford it.

“Raising the minimum wage can prove to be a zero-sum gain. Left with no other choice, small businesses will cut employees’ hours to compensate for the additional payroll costs.

“From experience, we’re skeptical about any tax incentive attached to a minimum wage increase for small businesses. Tax incentives can be easily removed through State Budget language, even as the minimum wage increase stays in effect.

“Taxpayers and workers would be better served if the state adopted a more long-term strategy to strengthen New Jersey’s economy as opposed to running off businesses and driving up the costs of goods for consumers including for those who can least afford it.”

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The 9th District Team

Chris Connors

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DiAnne Gove

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