SEMA eNews Vol. 10, No. 30, July 26, 2007

MINIMUM-WAGE HIKE TOOK EFFECT ON JULY 24

The federal minimum wage increased from $5.15 to $5.85 on July 24, 2007. Two more $.70 increases will occur on the same date in 2008 and 2009, at which time the wage will be $7.25. While the federal wage has not been raised in a decade, at least 29 states and many local jurisdictions already have minimum-wage rates that are higher than the federal standard. For example, the current wage in California is $7.50 and will increase to $8.00 in 2008.

In exchange for the wage increase, small businesses were provided some tax relief. The tax code's annual expensing limits have been raised from $112,000 to $125,000 for 2007 and 2008.

For further information, contact Stuart Gosswein at stuartg@sema.org.

 

Rate this article: 
5
Average: 5 (1 vote)