Is It Time For Companies To Pay For Not Paying Enough? The “Walmart Tax” Gains Momentum | Co.Exist

downloadMaking minimum wage dooms you to a life of hardship and toil. We in the U.S. have accepted or ignored this situation for a long time, while companies make billions of dollars by paying their workers less than enough to survive. But a national discussion about income inequality and the wave of worker protests for livable wages has brought attention to the issue. And now some policymakers want to add to the debate by focusing not just on the poor living conditions that result from low wages, but on the billions of dollars that the low-wage service economy costs every single taxpayer, as we pay for things like food stamps and health care for workers whose companies don’t pay them enough to live on.

Every year, U.S. taxpayers pay $153 billion in public assistance to working families, according to a recent study conducted by the University of California’s Berkeley Center for Labor Research and Education. This is more than the annual budgets of the U.S. Department of Education and Health and Human Services combined.

Paying low-wage employees more by raising the minimum wage—$15 an hour is what “livable” wage advocates are fighting for—is likely the most direct solution. But barring this, a few Connecticut lawmakers want to be the first in the nation to end what they see as essentially a massive payout to the Walmarts and McDonald’s of their state.

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