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Essentially, a Minnesota restaurant is charging 35 cents per bill to account for the 75 cent increase in Minnesota's minimum wage.
Increasing the minimum wage increases the cost of labor, no matter which way you slice it. So is it better to just hide the increased costs in the price of goods and services, or charge that fee?
On one hand, I think it's bad taste. On the other, people need to realize that they ultimately bear the costs of minimum wage increases.
They were going to pay it one way or the other, I fully support showing people exactly WHY those prices went up. As you said, either it can be hidden in prices that go up, or they can be honest about it and put it right there on their bill. What people ask for has consequences.
Just build it into the prices of the food. It would have been a slight increase across the board. Instead he chose to isolate it out like he did. Of course people will get upset. People get upset over non-issues all the time.
Reading the article. It looks like Minnesota doesn't have a tip credit. So basically his staff (since it's a restaurant), make the MN min wage of $8 plus tips.
Essentially, a Minnesota restaurant is charging 35 cents per bill to account for the 75 cent increase in Minnesota's minimum wage.
Increasing the minimum wage increases the cost of labor, no matter which way you slice it. So is it better to just hide the increased costs in the price of goods and services, or charge that fee?
On one hand, I think it's bad taste. On the other, people need to realize that they ultimately bear the costs of minimum wage increases.
Thoughts?
every restaurant has to accommodate a minimum wage hike. If your the only one charging a fee, your doing something stupid
Raise the minimum wage, merchant raises prices to cover it, why do we have inflation? Folks on fixed income get screwed because the dollars don't go as far. Brilliant!
Can you imagine what would happen if income tax wasn't deducted out of each check but you had to send in a payment at the end of the year?
If the arts tax in Portland is any indication, about 1/3 of taxpayers just won't pay. Also, there would be an unprecedented shift to the right on fiscal issues.
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