Tax cuts = no rise in the minimum wage?

From the ABC site:

“A peak business group says the Federal Government’s promised tax cuts should be taken into account when deciding on an increase to the minimum wage.

The Chamber of Commerce and Industry is proposing a rise of $10 to $11 – in line with last year’s increase.

The ACTU is lobbying for a $26 increase and the Federal Government is due to make a submission to the Fair Pay Commission on Friday.”

I suspect we will hear similar calls from business groups in NZ once the proposed tax cut programmes are fleshed out. And I would predict that a National government would feel very comfortable with such a trade off.

The fact that increases to the minimum wage will not be a priority under National has already been raised in a previous post in December last year:

National Party labour and industrial relations spokeswoman Kate Wilkinson said National did not oppose the minimum wage but preferred tax cuts.

“Our policy will be on a broader scale and looking at the bigger picture rather than just relying on this artificial solution of having an arbitrary level of what some people think is a fair wage and some people think is not.”

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