Seattle-Area Businesses Charge Customers Extra To Meet Minimum Wage Hike

Hannah Bleau Contributor
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SeaTac, a suburb of Seattle, Washington, recently passed a $15-an-hour minimum wage law. The minimum wage increase has been the object of heavy debate, even worrying some on the left. (RELATED: Seattle May Raise Its Minimum Wage To $15 An Hour, And Not All Liberals Are Happy About That)

According to a report by The Daily Signal, the effects are starting to be seen on consumer receipts, literally.

The Daily Signal reports that an airport parking service, Masterpark, is now implementing a “living wage tax,” resulting in an estimated 8.25 percent fee on top of their regular parking fare. The added charge is printed on customer receipts.

According to Erin Shannon, Director of WPC’s Center for Small Business, this proves that a higher minimum wage is fundamentally flawed.

“Contrary to what supporters claim, increasing the minimum wage does not create jobs and stimulate the economy,” Shannon writes. “The higher wages are not free money. The increased cost must either be absorbed by the employer, which is impossible for many who already operate on shoe-string profit margins, or it must be passed on to workers, in the form of reduced hours and benefits, and consumers, in the form of higher prices. Either way, someone pays.”

Nearby, Seattle approved of a gradual minimum wage increase over a span of up to seven years. According to a James Sherk, a senior policy analyst at the Heritage Foundation,  the cost will emerge one of two ways — it will either reduce the purchasing power of consumers or decrease workers on payroll.

“I expect to see both,” Sherk said.