Minimum – Business News Updates https://newsdaily.business Sun, 01 Jan 2023 22:14:47 +0000 en hourly 1 https://wordpress.org/?v=6.4.3 https://newsdaily.business/wp-content/uploads/2021/02/cropped-handshake-hand-gesture-dollar-money-finance-coin_96px-32x32.png Minimum - Business News Updates https://newsdaily.business 32 32 Minimum wage in the city of San Diego increases from $15.00 to $16.30 an hour https://newsdaily.business/2023/01/01/minimum-wage-in-the-city-of-san-diego-increases-from-15-00-to-16-30-an-hour/ https://newsdaily.business/2023/01/01/minimum-wage-in-the-city-of-san-diego-increases-from-15-00-to-16-30-an-hour/#respond Sun, 01 Jan 2023 22:14:47 +0000 https://newsdaily.business/2023/01/01/minimum-wage-in-the-city-of-san-diego-increases-from-15-00-to-16-30-an-hour/ San Diego’s minimum wage is set to increase to $16.30 an hour. SAN DIEGO — San Diegans will begin seeing more money in their paychecks effective Sunday, as the city’s minimum wage increases from $15 to $16.30 an hour. The change applies to all employees who perform at least two hours of work in one […]]]>


San Diego’s minimum wage is set to increase to $16.30 an hour.

SAN DIEGO — San Diegans will begin seeing more money in their paychecks effective Sunday, as the city’s minimum wage increases from $15 to $16.30 an hour.

The change applies to all employees who perform at least two hours of work in one or more calendar weeks of the year within the geographic boundaries of San Diego. The change is in accordance with the city’s Earned Sick Leave and Minimum Wage Ordinance, approved in 2016.

“With the cost of living rising, this increase could not come at a more needed time for workers and working families,” Mayor Todd Gloria said. “This increase means a better ability to make ends meet, put food on the table and spend in our local businesses.”

The minimum wage had increased yearly since 2016 when it was $10.50 and subsequently a dollar a year since 2019 which is tied to the previous year’s cost of living increase.

The Earned Sick Leave and Minimum Wage Ordinance applies to all industries and businesses without exception for several employees. Tips and gratuities do not count toward the payment of minimum wage.

Employers are required to post updated minimum wage notices in a conspicuous place at any workplace or job site in the city. The notices are available on the city’s Minimum Wage Program webpage.

According to the ordinance, employees will continue to earn sick leave, either by the accrual or the “front load” method, in which employers can provide a lump sum of at least 24 hours or three days of sick leave upfront at the beginning of each 12 months.

Employees may use earned sick leave for all of the reasons described in the ordinance, which include, but are not limited to, time for their medical care or the medical care of a family member. Employers may limit an employee’s use of earned sick leave to 40 hours within a benefit year.





Read More:Minimum wage in the city of San Diego increases from $15.00 to $16.30 an hour

2023-01-01 17:08:00

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Michigan minimum wage rises above $10 for first time https://newsdaily.business/2023/01/01/michigan-minimum-wage-rises-above-10-for-first-time/ https://newsdaily.business/2023/01/01/michigan-minimum-wage-rises-above-10-for-first-time/#respond Sun, 01 Jan 2023 16:14:01 +0000 https://newsdaily.business/2023/01/01/michigan-minimum-wage-rises-above-10-for-first-time/ Minimum wage in Michigan is rising 23 cents today, Sunday, Jan. 1, to go above $10 per hour for the first time in state history. Michigan’s minimum wage was $9.87 per hour in 2022, but jumps to $10.10 for 2023. A state law requires the wage to increase every year unless the yearly unemployment level […]]]>


Minimum wage in Michigan is rising 23 cents today, Sunday, Jan. 1, to go above $10 per hour for the first time in state history.

Michigan’s minimum wage was $9.87 per hour in 2022, but jumps to $10.10 for 2023. A state law requires the wage to increase every year unless the yearly unemployment level is above 8.5% – which is why there was no increase in 2021.

The tipped minimum wage rises to $3.84 for 2023, the 85% rate for minors 16 and 17 rises to $8.59 per hour and the training rate for new employees 16 to 19 remains unchanged at $4.25 per hour.

RELATED: Gas tax ticks up today in Michigan

Minimum wage could jump higher later this winter, depending on the results of a court ruling. A 2018 ballot proposal set the 2023 minimum wage at $13.03 and $11.73 for tipped workers, among other increases planned for other years. The Legislature amended the plan to reduce the minimum wage, the proposal’s organizers are arguing the move was unconstitutional.

A decision is expected Feb. 19, per a state news release.

The federal minimum wage has been $7.25 per hour since 2010. That adds up to about $15,000 per year for a full-time worker. At Michigan’s $10.10 per hour, that equates to $21,000 for a year of work. A full-time worker making $13.03 per hour would make $27,100 in a year.

Here’s how the state and federal minimum wage have risen since 1965.

(Can’t see the chart? Click here.)

Thirty states have a minimum wage above the federal rate. In 2022, 19 states had a minimum wage of $11 or higher. Only seven states had a bottom wage of $13-plus:

  • California ($15)
  • Washington ($14.49)
  • Massachusetts ($14.25)
  • Connecticut ($14)
  • Oregon ($13.50)
  • New York ($13.20)
  • New Jersey ($13).

In 2022, Michigan had the 26th-highest minimum wage in the nation, per the U.S. Department of Labor. USDL data isn’t available yet to show every state’s minimum wage for 2023.

While $10.10 is the highest minimum wage in Michigan history, it’s not the highest value when adjusting for inflation. In 1979, Michigan’s $2.90 minimum wage had the value of $12.65 in today’s dollars.

Here’s Michigan’s minimum wage since 1965 adjusted for inflation (to October 2022 dollars).

(Can’t see the chart? Click here.)

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Read More:Michigan minimum wage rises above $10 for first time

2023-01-01 15:41:00

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How Washington’s new minimum wage will impact the economy https://newsdaily.business/2023/01/01/how-washingtons-new-minimum-wage-will-impact-the-economy/ https://newsdaily.business/2023/01/01/how-washingtons-new-minimum-wage-will-impact-the-economy/#respond Sun, 01 Jan 2023 04:11:58 +0000 https://newsdaily.business/2023/01/01/how-washingtons-new-minimum-wage-will-impact-the-economy/ On Jan. 1, Washington will have the highest minimum wage in the nation. ANACORTES, Wash. — On Jan. 1, Washington’s minimum wage will jump to $15.74 an hour. The $1.25 increase makes it the highest in the nation.  Waitress Kaisha Paul works to support her family of three at Anacortes’ Rockfish Grill. She’s grateful for […]]]>


On Jan. 1, Washington will have the highest minimum wage in the nation.

ANACORTES, Wash. — On Jan. 1, Washington’s minimum wage will jump to $15.74 an hour.

The $1.25 increase makes it the highest in the nation. 

Waitress Kaisha Paul works to support her family of three at Anacortes’ Rockfish Grill. She’s grateful for her pending pay raise but knows it won’t go too far.

“I feel like every time our pay goes up the cost of living goes up even more,” she said.

Labor makes up 50% of the costs at the beloved brewpub. Now those costs, and many more, are increasing making for a tough balancing act for businesses.

Rockfish Grill owner Allen Rhoades said the pay hike and rising food costs are just two of the factors determining how he’ll run the business next year.

“We’re asking ourselves what we can change, what we can pare down,” he said. “We just got notice from Washington State that L&I rates are going up, unemployment rates are going up, and we don’t want to touch the benefits we provide to our employees.”

Voters approved the statewide minimum wage hike in 2016. It has steadily risen every year since, from $9.47 an hour to now nearly $16.

While the increase will take a bite out of profits, just how much of an impact it will have on the local economy remains unclear.

Hart Hodges, co-director of the Center for Economic and Business Research at Western Washington University doesn’t expect it to be severe. He says the tight labor market has already forced many small businesses to pay above minimum wage.

“We had the push for $15 an hour pre-COVID, so a lot of the adjustment has already happened,” said Hodges. “This particular increase in the minimum wage is just not going to have that big of an effect.”

As one of the estimated 100,000 minimum wage workers in Washington, Kaisha just keeps smiling.

She remains hopeful, despite inflation, a potential recession and another uncertain new year ahead.

“I try to stay optimistic, as much as I can be,” she said, “but I have a son going into college soon, and I can’t help but worry about that.”



Read More:How Washington’s new minimum wage will impact the economy

2023-01-01 00:22:37

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Minimum wage is going up in 23 states. Here’s where to expect increase https://newsdaily.business/2022/12/23/minimum-wage-is-going-up-in-23-states-heres-where-to-expect-increase/ https://newsdaily.business/2022/12/23/minimum-wage-is-going-up-in-23-states-heres-where-to-expect-increase/#respond Fri, 23 Dec 2022 21:30:53 +0000 https://newsdaily.business/2022/12/23/minimum-wage-is-going-up-in-23-states-heres-where-to-expect-increase/ Over the past year, historically strong wage growth hasn’t kept pace with skyrocketing inflation, leaving millions of low- to middle-income Americans struggling to pay their bills. Starting New Year’s Day, the lowest-paid workers will make up a good chunk of that lost ground. Twenty-one states and 41 cities and counties are poised to raise their […]]]>




Read More:Minimum wage is going up in 23 states. Here’s where to expect increase

2022-12-23 20:57:45

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New Minimum Wage Changes Could Cost Servers Money https://newsdaily.business/2022/12/07/new-minimum-wage-changes-could-cost-servers-money/ https://newsdaily.business/2022/12/07/new-minimum-wage-changes-could-cost-servers-money/#respond Wed, 07 Dec 2022 02:17:46 +0000 https://newsdaily.business/2022/12/07/new-minimum-wage-changes-could-cost-servers-money/ More money will be coming to the paychecks of those that work at the state minimum wage level. But there may be some major changes coming with that increase that could shake the hospitality industry more than they have seen. In the new year, the minimum wage in the state of Michigan is going to […]]]>


More money will be coming to the paychecks of those that work at the state minimum wage level. But there may be some major changes coming with that increase that could shake the hospitality industry more than they have seen.

In the new year, the minimum wage in the state of Michigan is going to go up to $10.10/hour and for tipped wages, it’ll go to $4.25. A lot of people are happy to hear that but there’s also push saying that tipped wages are unconstitutional. The State CourtMinimum Wage Pkg 12 6 2200 00 38 29still001 of Appeals is going to rule on that, and if they agree that it’s unconstitutional, that means tip servers will be paid as much as everyone else.

Even people in the industry, who will get that raise, are saying that may be a bad idea

“There’s a lot of worries that it would actually result in server’s making less money, not more,” said Brian Calley, President of the Small Business Association of Michigan.

There are not many people pushing back against raising the state minimum wage. Most places are forced to pay well above that just to get workers in this climate.

They are worried about a possible court ruling that would do away with the tipped wage system.

“Over the course of the next year, it would eliminate the tipped wage difference,” said Calley. “Instead of servers working on a tips system, it would move them to the regular minimum wage.”

The ruling would also bump the state minimum wage to $12 an hour, for everyone. If you’re a server or bartender, you are most likely making much more than that.

“I did a survey of my servers to see what they are taking home and it’s over $25 an hour,” said Rick Swindlehurst, owner of several Mt. Pleasant restaurants and President of the Michigan Licensed Beverage Association. “They won’t be making that if you take away the tips system.”

The tip system wouldn’t go away, per se, but would customers tip the same amounts if they knew servers made more and now their meals cost more?

“It’s not really known how the consumer will respond to tip changes, when you know that they will absolutely have to pay much much higher cost than they did in the first place,” said Calley.

At a time when restaurants are struggling to fill positions, they assume more people will leave for a better career elsewhere.

“We’re going to have trouble hiring servers and bartenders” said Swindlehurst, “They’re not going to want to work for 12 bucks an hour and take a chance on maybe getting tips.”





Read More:New Minimum Wage Changes Could Cost Servers Money

2022-12-07 00:19:16

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First TVs, now tortillas: U.S. companies set minimum prices to halt discounting https://newsdaily.business/2022/11/18/first-tvs-now-tortillas-u-s-companies-set-minimum-prices-to-halt-discounting/ https://newsdaily.business/2022/11/18/first-tvs-now-tortillas-u-s-companies-set-minimum-prices-to-halt-discounting/#respond Fri, 18 Nov 2022 00:47:50 +0000 https://newsdaily.business/2022/11/18/first-tvs-now-tortillas-u-s-companies-set-minimum-prices-to-halt-discounting/ NEW YORK, Nov 17 (Reuters) – Makers of everything from toys to tortillas are increasingly setting minimum prices on their goods to maintain profits and limit price cutting as retailers like Walmart Inc (WMT.N) and Amazon.com Inc (AMZN.O) try to grab sales from each other online. As a result, shoppers face fewer discounts for everyday […]]]>


NEW YORK, Nov 17 (Reuters) – Makers of everything from toys to tortillas are increasingly setting minimum prices on their goods to maintain profits and limit price cutting as retailers like Walmart Inc (WMT.N) and Amazon.com Inc (AMZN.O) try to grab sales from each other online.

As a result, shoppers face fewer discounts for everyday purchases at a time when inflation is around 8%, and as retailers look to unload hundreds of billions of dollars of excess inventory. read more

For many years manufacturers set the lowest price at which retailers could advertise certain big-ticket items like TVs. They wanted to stop shoppers who scoped out an item on the showroom floor, and then went online to find it advertised by another retailer at a lower price, from buying it there.

Now, as shoppers stick with the pandemic habit of buying more household basics online, companies such as Colgate-Palmolive Co (CL.N) have in recent months used what are known as minimum advertised price policies on less expensive products like its Optic White Pro Series toothpaste on Amazon, a person familiar with the matter said.

The Pro Series toothpaste, now advertised for about $9.96 on Amazon, is a higher-margin product where Colgate wants to protect its profits amid soaring costs. read more As a result, consumers have struggled to find a lower advertised price anywhere else.

Toymaker Hasbro Inc (HAS.O) requires retailers to keep any advertised prices above its specified levels ranging from $6.99 to $33.99 on Monopoly, Twister, Chutes & Ladders and 21 other games and toys, except during the holiday shopping season, according to a company memo seen by Reuters.

Reuters Graphics

Online shopping for consumer staples, coupled with Amazon’s cut-throat competition with Walmart Inc (WMT.N), have driven makers of many consumer products to put price floors on low-cost products, e-commerce consultants said.

Mr. Tortilla, which makes diet-friendly tortillas sold online by Walmart and Amazon, decided to set a minimum price as it expanded sales, aiming to keep prices level across e-commerce retailers, said Ron Alcazar, the company’s chief operating officer.

“We’re seeing categories adopt (these floors) that never had, like food and beverage,” said Jack Gale, an account executive at PriceSpider, which has seen 120% year-over-year growth in the number of brands using its products that help enforce these price floors since 2018.

NOT LEGAL IN EUROPE

While legal in the United States, these policies are illegal in many countries, including across Europe in most cases.

Agreements dictating the for-sale price between retailer and manufacturer are also not legal in some states including California and Maryland.

Amazon’s part in these pricing floors stems from its pledge to offer products priced as low as, or lower than, rivals like Walmart. This compels brands that sell huge volumes of goods on Amazon to set, and then enforce, a minimum price. Otherwise, they face shrinking profits.

Wholesalers to Amazon and sellers on its platform can be penalized by poor placement on Amazon.com, among other practices, if the company finds lower prices on the goods elsewhere, the e-commerce consultants said.

“We have no role in creating them or in their continued adoption,” the Amazon spokesperson said when asked about minimum advertised pricing policies. “Like any store, we reserve the right not to highlight prices that are uncompetitive compared to other major retailers. We always set our prices independently.”

A lawsuit California has filed against Amazon claims suppliers have to agree to rules set by Amazon that ultimately lead brands to adopt and enforce minimum advertised price policies.

U.S. Representative David Cicilline, who is working on proposed antitrust legislation aimed at bringing down prices said, “Amazon routinely abuses its monopoly power to coerce sellers and suppliers, preventing them from offering cheaper prices elsewhere.”

Amazon said in response that it does not prevent sellers from offering lower prices elsewhere.

A 2007 United States Supreme Court decision permitting agreements “within reason” on for-sale prices between retailers and suppliers helped set the stage for the expansion of these price policies.

Reporting by Jessica DiNapoli; Editing by Vanessa O’Connell and Chris Sanders

Our Standards: The Thomson Reuters Trust Principles.

Jessica DiNapoli

Thomson Reuters

New York-based reporter covering U.S. consumer products spanning from paper towels to packaged food, the companies that make them and how they’re responding to the economy. Previously reported on corporate boards and distressed companies.



Read More:First TVs, now tortillas: U.S. companies set minimum prices to halt discounting

2022-11-17 21:57:00

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Dan Price, CEO from Idaho who set $70K minimum salary, quits https://newsdaily.business/2022/08/19/dan-price-ceo-from-idaho-who-set-70k-minimum-salary-quits/ https://newsdaily.business/2022/08/19/dan-price-ceo-from-idaho-who-set-70k-minimum-salary-quits/#respond Fri, 19 Aug 2022 05:51:51 +0000 https://newsdaily.business/2022/08/19/dan-price-ceo-from-idaho-who-set-70k-minimum-salary-quits/ The Seattle CEO from Idaho who rose to national prominence for setting a $70,000 minimum salary for all his employees — and slashing his own to match — has resigned as CEO of the company he founded in college amid accusations of misdemeanor assault. Dan Price said he was stepping down at Gravity Payments, a […]]]>


The Seattle CEO from Idaho who rose to national prominence for setting a $70,000 minimum salary for all his employees — and slashing his own to match — has resigned as CEO of the company he founded in college amid accusations of misdemeanor assault.

Dan Price said he was stepping down at Gravity Payments, a credit card processing firm, to dedicate more time to “fighting false allegations.” Earlier this year, he was accused of attempting to kiss a woman against her will, the Seattle Times reported.

Price resigned shortly before The New York Times published an investigative story detailing allegations by numerous women of improper behavior. “Mr. Price’s internet fame has enabled a pattern of abuse in his personal life and hostile behavior at his company, interviews with more than 50 people, documents and police reports show,” the Times article said.

“My No. 1 priority is for our employees to work for the best company in the world, but my presence has become a distraction here,” Price wrote in an email to his staff that he also shared on Twitter on Wednesday night. “I also need to step aside from these duties to focus full time on fighting false accusations made against me,” adding, “I’m not going anywhere.”

Price did not elaborate on the allegations or immediately respond to a request for comment. Gravity Payments did not immediately respond to a request for comment.

A frequent critic of corporate executives and the vast pay gap between them and their workers, Price rose to fame in 2015 after announcing he would raise every employee’s salary to at least $70,000. At that time, his 120 employees were paid an average salary of $48,000 a year, according to the Times.

He also reduced his own $1 million compensation to that floor, taking a more than 90% pay cut, and tapped roughly three-quarters of that year’s profits to cover the higher wages, the report added. Price said he would keep his salary low until the profits were earned back.

On Twitter Price touted the success of his company’s model and the benefits afforded to employees. The minimum pay for workers is now $80,000, he said, and staff members received $10,000 baseline raises this year. Job openings typically attract more than 300 applicants, he said.

The original salary floor was set the same year Price won a legal battle against his older brother, Lucas Price. A three-week court battle ensued after his brother alleged that his rights as a minority shareholder were violated when Dan Price upped his own salary later that year. A King County Superior Court judge disagreed and ordered Lucas Price to pay his brother’s legal fees, totaling $1.3 million.

Price grew up between Melba and Marsing in rural Canyon County, the Idaho Statesman reported previously. He graduated from Nampa Christian High in 2003. His father, Ron Price, is a longtime Boise business consultant, speaker and author.

Price was 19 when he started Gravity Payments in 2004 out of his dorm room at Seattle Pacific University, a Christian liberal arts university, using seed money from Lucas Price, according to the Times.

In 2019, Dan Price visited Boise to open a Gravity Payments office at at 110 N. 27th St., where 40 people worked.

0923gravitypayments04
Dan Price, CEO of Gravity Payments, chats with employees during a celebration opening Gravity Payments’ new Boise office in 2019. Katherine Jones kjones@idahostatesman.com

Now 38, Price’s public persona is shaped around his advocacy for average workers and criticism of big business. He authored a 2020 book titled, “Worth It: How a Million-Dollar Pay Cut and a $70,000 Minimum Wage Revealed a Better Way of Doing Business.”

He also wrote that 98% of Gravity Payments employees volunteered to temporarily cut their pay from 5 to 100% to avoid layoffs. On Wednesday Price said that the company has never laid off a single employee in its 18-year history.

The company’ chief operating officer, Tammi Kroll, has stepped in as CEO, Price said in his announcement.

Idaho Statesman Business and Local News Editor David Staats contributed.

This story was originally published August 18, 2022 1:32 PM.





Read More:Dan Price, CEO from Idaho who set $70K minimum salary, quits

2022-08-19 01:46:52

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The corporate minimum tax could hit these ultra-profitable companies https://newsdaily.business/2022/08/12/the-corporate-minimum-tax-could-hit-these-ultra-profitable-companies/ https://newsdaily.business/2022/08/12/the-corporate-minimum-tax-could-hit-these-ultra-profitable-companies/#respond Fri, 12 Aug 2022 23:25:53 +0000 https://newsdaily.business/2022/08/12/the-corporate-minimum-tax-could-hit-these-ultra-profitable-companies/ Updated August 12, 2022 at 7:20 p.m. EDT|Published August 11, 2022 at 6:00 a.m. EDT Cash effective tax rates of most-profitable companies since 2019 Berkshire Hathaway, Amazon and Intel paid less than 15 percent in taxes globally in each of the last three years Tech companies including Alphabet lower their tax bills by reporting income […]]]>



Cash effective tax rates

of most-profitable companies since 2019

Berkshire Hathaway, Amazon and Intel paid less than 15 percent in taxes globally in each of the last three years

Tech companies including Alphabet

lower their tax bills by reporting income

in countries with lower rates

Source: Washington Post analysis

of Calcbench data

Cash effective tax rates

of most-profitable companies since 2019

Berkshire Hathaway, Amazon and Intel paid less than 15 percent in taxes globally in each of the last three years

Tech companies including Alphabet lower their tax bills by reporting income in countries with lower rates

Source: Washington Post analysis of Calcbench data

Cash effective tax rates

of most-profitable companies since 2019

Berkshire Hathaway, Amazon and Intel paid less than

15 percent in taxes globally in each of the last three years

Tech companies including Alphabet lower their tax bills by reporting income in countries with lower rates

Source: Washington Post analysis of Calcbench data

Cash effective tax rates

of most-profitable companies since 2019

Berkshire Hathaway, Amazon and Intel paid less than 15 percent in taxes globally in each of the last three years

Tech companies including Alphabet lower their tax bills by reporting income in countries with lower rates

Source: Washington Post analysis of Calcbench data

Placeholder while article actions load

correction

A previous version of this article incorrectly included Union Pacific in the table of profitable companies with low taxes rates because of an error in the source data. Its cash effective tax rate for the last three years is 18 percent.

On Friday the House passed the Inflation Reduction Act, which includes a minimum tax rate of 15 percent on highly profitable companies — a levy that could hit Amazon, Verizon and others. The tax would help pay for large investments across climate and health care.

But the minimum tax conflicts with a hallmark of corporate taxes in America: deductions and credits ratified by Congress.

Tax credits and deductions are purposefully designed as tools to incentivize certain behaviors. But because they reduce companies’ tax bills, they stand to chip away at the effectiveness of a minimum tax. Companies can still use carve-outs for research and development, investment expenses and others to lower their tax bills. Democrats’ marquee climate proposal comes in the form of tax breaks — which are also exempted from the corporate minimum tax rate.

Democrats savor spending bill — and some tell voters they want to do more

Because of these exemptions, it would remain possible for profitable corporations to achieve a tax rate below 15 percent, Daniel Bunn, executive vice president at the Tax Foundation, said in an email.

The minimum tax proposal would raise $220 billion over 10 years, according to the Joint Committee on Taxation, a nonpartisan congressional body that analyzes tax bills. The minimum tax rate would apply to companies that reported to shareholders an annual average of $1 billion in annual profit over three years.

More than 250 companies in the S&P 500 averaged more than $1 billion in pretax income over the last three years, according to a Washington Post analysis of Calcbench data. Of those, 83 paid less than 15 percent in income tax globally. The list includes tech companies such as Amazon and Intel, banks like Bank of America and U.S. Bancorp, telecom giants Verizon and AT&T, and other household names like General Motors and UPS.

The rate is calculated according to global income, meaning a company could, in theory, “have a domestic effective tax rate below 15 percent as long as their foreign profits were taxed higher,” Kyle Pomerleau, a senior fellow at the American Enterprise Institute, said in an email.

The two-week scramble that saved Democrats’ climate agenda

President Biden frequently notes that 55 profitable corporations paid no federal income tax in 2020, according to an analysis by the Institute on Taxation and Economic Policy, a liberal think tank.

The talking point sidesteps that companies often pay different amounts in taxes year-to-year. But it points to a truism that Democrats aim to fix: Over the long run, many companies pay less than the current standard corporate tax rate of 21 percent.

Some corporations avoid federal income taxes by redirecting revenue to countries where they operate with lower tax rates. Until the end of 2019, Google’s parent company, Alphabet, licensed its own intellectual property from Bermuda — an offshore tax haven. Alphabet reported its global effective tax rate in 2018 and 2019 was lowered by billions because “substantially all” of its foreign income was earned by its Irish subsidiary, according to a securities filing.

Corporations also lower their taxes through deductions and credits. Amazon shaved $3 billion off its tax bills from 2019 to 2021 through its use of stock-based compensation and another $2.2 billion for other tax credits including one for research and development, according to securities filings. The company reported federal tax expenses of $4.1 billion for those years on $69.4 billion in pretax U.S. profit — an effective federal rate of less than 6 percent. (Amazon founder Jeff Bezos owns The Post.)

To gain the support of Sen. Kyrsten Sinema (D-Ariz.), Democrats amended their minimum rate proposal to exclude deductions for certain investments and exempt firms owned by private equity. Those last-minute changes will further help some ultra-profitable corporations to pay less than the minimum rate.

This analysis relied on data from Calcbench, pulled from company filings to the Securities and Exchange Commission. The chart shows cash-effective tax rates (tax expense divided by pretax income). The chart includes the 20 most profitable companies in recent years that disclosed enough numbers to make the calculation.



Read More:The corporate minimum tax could hit these ultra-profitable companies

2022-08-12 21:49:37

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Inflation leads federal minimum wage to reach lowest value since 1956 https://newsdaily.business/2022/07/15/inflation-leads-federal-minimum-wage-to-reach-lowest-value-since-1956/ https://newsdaily.business/2022/07/15/inflation-leads-federal-minimum-wage-to-reach-lowest-value-since-1956/#respond Fri, 15 Jul 2022 20:48:22 +0000 https://newsdaily.business/2022/07/15/inflation-leads-federal-minimum-wage-to-reach-lowest-value-since-1956/ An activist holds a placard demanding a $15 an hour minimum wage and tips for restaurant workers during a rally to call for additional relief for restaurants in Washington, D.C., on Feb. 8, 2022. Mandel Ngan | AFP | Getty Images Record high inflation has pushed the value of the federal minimum wage down to […]]]>


An activist holds a placard demanding a $15 an hour minimum wage and tips for restaurant workers during a rally to call for additional relief for restaurants in Washington, D.C., on Feb. 8, 2022.

Mandel Ngan | AFP | Getty Images

Record high inflation has pushed the value of the federal minimum wage down to the lowest level in 66 years, according to a new analysis from the Economic Policy Institute.

That minimum federal hourly rate of $7.25 per hour is worth less than any time since February 1956, according to the Washington, D.C., think tank.

The federal minimum wage in 1956 was 75 cents, equivalent to $7.19 in June 2022 dollars.

The analysis is based on consumer price index data for June, in which the inflation rate came in hotter than expected. The index, which measures the change in prices over time for consumer goods and services, soared 9.1% from the year-earlier period.

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The $7.25 federal minimum wage has not changed since July 2009 — the longest time without a new federal minimum wage increase since Congress established it in 1938, according to the institute.

As the cost of living goes up, raising the minimum wage is one way Congress can help workers. However, recent efforts stalled when they were deemed ineligible for inclusion in coronavirus relief legislation.

“The minimum wage is one of the key policy tools in the U.S. to raise people’s earnings at the bottom of the wage distribution,” said Ben Zipperer, economist at the Economic Policy Institute.

Declining earning power

A restaurant worker at a May 26, 2021 “Wage Strike” demonstration organized by One Fair Wage in Washington, D.C.

Anna Moneymaker | Getty Images News | Getty Images

A worker earning the minimum wage today makes 27.4% less than those in July 2009, adjusted for inflation, according to the findings, or 40.2% less than in February 1968.

That date marked the historical high point for the minimum wage due to changes enacted by Congress that made it so more industries, particularly those that typically employed Black workers, were covered by the minimum pay rate.

“The higher minimum wage at that time was a huge victory of the civil rights movement,” Zipperer said.

The value of the minimum wage has since diminished due to congressional inaction, he added.

Specific features of the current federal minimum wage have also contributed to its loss in value.

The minimum wage is not indexed to inflation, which means it does not increase every year. Had Congress addressed that in 2009, the minimum wage would be closer to $10 an hour today, Zipperer said.

Moreover, the federal tipped minimum wage, which applies to restaurant and other workers, has been $2.13 per hour for more than 30 years.

Efforts to raise the minimum wage have happened at the state and local levels. Connecticut, Nevada and Oregon, as well as Washington, D.C., boosted minimum wages this month. Ballot initiatives to raise minimum wages typically always pass due to the popularity of the move, according to Zipperer.

Meanwhile, companies like Amazon, Target and Walmart have also stepped up and established higher minimum pay rates for employees.



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Inflation leads federal minimum wage to reach lowest value since 1956

2022-07-15 18:41:58

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Lic Board Approved Minimum 3.5% Stake Dilution Via Ipo, Can Raise Limit To 5% Depending On Market Conditions https://newsdaily.business/2022/04/24/lic-board-approved-minimum-3-5-stake-dilution-via-ipo-can-raise-limit-to-5-depending-on-market-conditions/ https://newsdaily.business/2022/04/24/lic-board-approved-minimum-3-5-stake-dilution-via-ipo-can-raise-limit-to-5-depending-on-market-conditions/#respond Sun, 24 Apr 2022 02:12:26 +0000 https://newsdaily.business/2022/04/24/lic-board-approved-minimum-3-5-stake-dilution-via-ipo-can-raise-limit-to-5-depending-on-market-conditions/ The Board of Life Insurance Corporation (LIC) of India is learnt to have agreed on diluting 3.5% stake in the country’s largest insurer, even as it keeps the 5% stake dilution as an upward limit, as filed in the draft red herring prospectus. A senior official aware of the development, the Board in a meeting […]]]>


The Board of Life Insurance Corporation (LIC) of India is learnt to have agreed on diluting 3.5% stake in the country’s largest insurer, even as it keeps the 5% stake dilution as an upward limit, as filed in the draft red herring prospectus.

A senior official aware of the development, the Board in a meeting on Saturday, decided on reducing the stake for dilution, which will be subject to regulatory approvals, amid headwinds from volatile stock markets and investor interest, even as it could dilute up to 5% stake as stated in the prospectus.

“The 5% limit is still on the table. As per the demand at the moment, markets can support about 3.5%, but if it changes, we can easily increase it to 5%,” the official said, asking not to be named as the proceedings are not in public domain.

The government is seeking to garner between 21,000- 30,000 crore from the sale, at a valuation of 6 trillion, the official added.

While IPO is expected to be taken to the markets in the first week of May, reservations, discounts and issue price will be ascertained by Wednesday morning. Queries to the finance ministry did not elicit a response as of Saturday late evening.

The largest IPO to come to the Indian stock markets will therefore take place well before its deadline of May 12 after which it will have to refile the DRHP with March quarter results.

Tuhin Kanta Pandey, the secretary for the department of investment and public asset management (Dipam), said last month at the Mint India Investment Summit 2022 that there is strong investor interest in the state-run company’s offer, but the Centre will proceed with the IPO only when it is confident of successfully listing the insurer.

The success of LIC’s IPO is crucial for the government to meet its asset sales goal, which has been cut to a modest 65,000 crore target for the current fiscal, lower than the revised 78,000 crore for the previous fiscal. The government could meet less than 17% of the revised asset sales target for FY22 as the Russian invasion of Ukraine, and the ensuing volatility in stock markets forced it to postpone the LIC share sale to this fiscal year.

However, delaying the IPO beyond 12 May will mean delaying the IPO by two to three months.

Mint reported earlier this week that the country’s largest insurer put up a stellar performance with first-year premium collection, a key metric, rose 7.9% to 1.98 trillion for the year ended 31 March, with a market share of 63.25%, lower than the previous year. However, in March, the company’s premium collections grew 51% to 42,319.22 crore from a year earlier, garnering a market share of 71%. LIC sold 21.7 million insurance policies in the year ended 31 March, 3.54% more than the previous fiscal, boosting its market share to 74.6% in terms of policies sold.

The mega IPO has drawn significant interest from at least 12 large foreign and domestic fund management firms, Mint reported last week. At least five of India’s top asset management companies, at least three large foreign sovereign funds, two global pension fund management companies and two global hedge funds have committed to invest 18,000 crore to bankers managing the LIC IPO, the report said. Mint had also reported that domestic mutual funds are likely to invest 7,000-8,000 crore as anchor investors.

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Read More:Lic Board Approved Minimum 3.5% Stake Dilution Via Ipo, Can Raise Limit To 5% Depending On Market Conditions

2022-04-23 15:47:22

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