Fiscal Cliff Could Impact Colorado’s Minimum Wage Increase
As many as 66,000 minimum wage earners in Colorado are set to get a raise on January 1st but uncertainty over the fiscal cliff could nullify the 14 cent per hour increase.
“You’re probably talking about $15 and $20 dollars a month after taxes that folks are going to be taking home,” says Colorado Jobs With Justice director Joe Thompson. “It doesn’t sound like great deal – but it is groceries for a day, paying the electric bill.”
Minimum wage will increase to $4.76 for tipped workers and $7.78 for full minimum wage earners. That’s expected to translate to about $300.00 for an average worker.
Colorado is one of nine states set to raise the minimum wage on New Year’s Day. But taxes will go up for most everyone if there is no deal reached on the fiscal cliff when lawmakers get back from the Christmas holiday.