(The Center Square) – The Idaho state Legislature is considering a bill that would allow municipalities to raise their minimum wages above the Idaho minimum wage, which matches the federal minimum wage of $7.25 an hour. An Idaho-based think tank cautions that that could lead to some bad consequences for workers, citing Seattle as an example.
The fiscal note on Idaho House Bill 48 says there will be no cost to the change.
“There is no fiscal impact to the general fund or to any other government fund,” the explanation states. “This legislation is an authorization for local government to establish an increased minimum wage which would not increase any costs to them.”
In a report published on the Mountain State Policy Center website Wednesday, think tank President Chris Cargill said there are consequences. He calls the proposed minimum wage hikes “one of the many policy ideas peppered with tradeoffs, but one of the few that have such a direct impact on businesses and employees alike.”
Looking at the available data, Cargill admits that some workers would benefit from the law, but he points out that the hike would cut against other workers as well. Some workers would see their hours reduced. Others could wind up with fewer jobs to choose from.
He cites a report by economic researchers published in the Harvard Business Review about stores and minimum wage workers in California and Texas.
Researchers found that for every $1 hike in the minimum wage, “the total number of workers...
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