– Who could have predicted that less stimulus would mean a slower economy?
– A while ago, I was farting around downtown and got on the Atlantic Street Overpass sidewalk. It wasn’t particularly helpful, but it’s nice to see that there’s now a bike path under it.
– Well, it’s a lousy substitute for losing our buses, but bus poetry is coming back.
– Oh, hey guys, we know the length of a day on Beta Pictoris b
It’s tough running a small business.
Your rent goes up, but what can you do? So you muddle on. Fuel costs go up, but you muddle on. The cost of supplies goes up—food, inventory, whatever—and you muddle on. The cost of borrowing goes up, and you muddle on. Health insurance premiums go up (oh man do they ever), and you muddle on.
But lawmakers talk about raising the minimum wage, and you throw up your arms and threaten to close your doors.
So what makes the cost of labor different from all those other fluctuating costs business owners must deal with every day? Labor is the only cost of business where you set the price.
And that’s where I think a lot of this emotional response to the minimum wage comes from. It’s about control. Both controlling one’s costs and controlling one’s employees. A government mandated minimum wage upsets the traditional power relationship between management and labor. And understand: for many small business owners, that’s the only power relationship in which they currently hold the advantage.
Like I said, it’s tough running a small business. I know. You put so much equity into your business—both sweat and monetary—and yet it feels like so much of what determines success or failure is beyond your control. The economy. The competition. Consumer tastes. Disruptive technologies. Taxes and regulations. Hell, even the weather. And now the City of Seattle is going to tell you how much to pay your workers? Folks who’ve never owned a business—who’ve never hired and fired—may not understand it, but the experience often comes with a profound sense of a lack of control.
I get it. And I’m not dismissing the very real financial challenge that a $15 minimum wage would pose to some businesses. But my advice to small business owners in general is to acknowledge that at least some of your negative response to this proposal is emotional, and to trust that like most of the other challenges you face on an everyday basis, you will ultimately find a way to muddle on. In fact, experience from previous substantial minimum wage hikes tells us that that’s what most small businesses manage to do. Because as much as it doesn’t feel like it, you actually have a lot more control over the success or failure of your business than simply the power to dictate wages.
A proposal to raise the federal minimum wage to $10.10, an underpinning of President Obama’s economic agenda and an issue that Democrats hope to leverage against Republicans in the midterm elections, failed in the Senate on Wednesday.
The vote was 54 to 42, with 60 votes needed to advance the measure.
All but one Republican voted to sustain a filibuster against the measure, saying that the increase would damage the fragile economy and force businesses to cut hundreds of thousands of jobs.
Democrats were mostly united behind the bill.
Think about that. Republicans bothered to filibuster a bill that would raise the federal minimum wage from $7.25 an hour to just $10.10 an hour—despite the fact that this bill was almost certainly never would have reached the floor in the Republican controlled House. That’s how much Republicans are opposed to raising the incomes of working people.
There is class warfare being waged in our nation, and Republicans are not on the side of the vast majority of Americans.
A botched execution using a disputed new drug combination left an Oklahoma inmate writhing and clenching his teeth on the gurney on Tuesday, leading prison officials to halt the proceedings before the inmate’s eventual death from a heart attack.
Clayton Lockett, 38, was declared unconscious 10 minutes after the first of the state’s new three-drug combination was administered. Three minutes later, though, he began breathing heavily, writhing on the gurney, clenching his teeth and straining to lift his head off the pillow.
Shame on us as a society for allowing this to happen. There has always been the option of not executing people no matter how horrible their crimes.
No doubt there are some actual Dems who are actually disappointed at the way Kirkland mayor Joan McBride was shoved aside in the 48th Legislative District state senate race in order to make room for incumbent Democratic state Representative Cyrus Habib. McBride had gotten into the race early against turncoat incumbent state Senator Rodney Tom, but once Tom dropped out, she and Habib quickly switched races. It’s a smart political move given that the seat could determine control of the senate, but I certainly empathize with McBride or her supporters if they feel like she got the short end of the stick.
Washington State Republican Party chair Susan Hutchison wages war on accusations of a Republican War on Women
That said, the concern-trolling coming from the Washington State Republican Party is hilarious!
Democrat Kirkland Mayor Joan McBride has been running for the State Senate in the 48th legislative district for months. However, Representative Cyrus Habib has now pounced on a perceived opportunity, seeking to throw yet another woman Democrat under the bus. Habib, taking the easy way out, avoided running against Rodney Tom, but now that Tom has announced he will not seek reelection Habib wants McBride to step aside so that a more high-profile candidate (such as himself) can seek the seat. He promised he would have “a number of conversations” with party leaders. The goal seems clear: push the woman Democrat to the curb and tell her to support a male Democrat who wants to advance his personal political career.
That’s a, um, hysterical line of attack coming from state GOP chair Susan Hutchison after she made such a big stink about her party paying her less than her male predecessor. “The pay cut defies the concept of equal pay for equal work, playing into the ‘war on women’ narrative against Republicans,” Hutchison lamented at the time. But this recent I’m-rubber-you’re-glue press release is more than just ironic; it’s also an entirely calculated response intended to blunt criticism of the GOP’s anti-women policies, by, you know, accusing Democrats of hating women too!
“You know, it confuses the voters so much when both sides are accusing each other,” Hutchison told fellow GOPers January 25 at the Mainstream Republicans annual Roanoke Conference, “that you just say ‘okay, it’s a wash.’ Both anti-women.”
Ha, ha! Voters are sooooo stoopid, says Hutchison! (Okay. Maybe. But I’m not a state party chair, so I can say it.)
But Hutchison’s war on the War on Women doesn’t end there. In addition to advising Republicans to accuse Democrats of hating women, Hutchison also has some advice specifically for male candidates: “Please don’t mention the word ‘rape’ in any way,” Hutchison sagely advises. “Also, let’s not talk about anything to do with women’s reproductive cycles or um, um, women’s sexuality,” continues Hutchison before state Representative Liz Pike (R-Camas) helpfully adds in: “Don’t talk about things in the bedroom or the doctor’s office.” Because letting women know that Republicans want to control their sexuality makes it harder to win women’s votes, I suppose.
Instead, if the topic comes up, just change the subject. “Talk about the Seahawks,” suggests Hutchison.
Really:
A moment later, just beyond the end of the audio above, Hutchison goes on to amazingly describe former Republican presidential candidate Mike Huckabee as “a victim of the war on women.”
That she even has to tell male candidates not mention the word “rape” tells you everything you need to know about a Republican Party whose policies are profoundly anti-woman. But it’s not just talk, it’s action. Hutchison’s party opposes choice—both when it comes to abortion and birth control. Republicans overwhelmingly opposed the Violence Against Women Act. They even opposed the Lilly Ledbetter Fair Pay Act, an irony apparently lost on Hutchison in her own struggle for equal pay.
The truth is, Democrats effectively brand Republicans as being anti-women because Republican policies are anti-women. The embarrassing “rape” talk only make it easier. So if Hutchison really wants to change that perception, perhaps she should advise the men in her party to change the party platform?
It is important to remember that none of this would have been necessary had Olympia not cowardly reimposed I-747 after Tim Eyman’s fiscally irresponsible tax-limiting initiative had been ruled unconstitutional:
Over the objections of some advocates, the Seattle City Council on Monday unanimously approved forwarding to the August ballot the creation of a Seattle Parks District to provide a new and permanent source of funding for the city’s parks and recreation programs.
Seriously. How is it that our local daily continues to cover this story without covering the context?
Also, you know how some of the establishment folk continue to roll their eyes at Kshama Sawant for being some sort of ridiculous one-and-done accidental council member, inflexibly incapable of pragmatic compromise?
City Councilmember Kshama Sawant said she agreed that additional property taxes placed a burden on middle-income residents when the “superwealthy and big business” should be paying a larger share.
But she said the city had limited taxing authority and that low-income residents and those on fixed-incomes are some of the heaviest users of parks and community centers.
“Sometimes, these are the only services they have access to. It’s important that we’re doing this as a council.”
That’s crazy talk! Amiright?
I’m not surprised that King County Metro’s Proposition 1 failed at the polls during a special election, but like most other observers I am surprised that it failed by such a wide margin. Late ballots have softened the blow somewhat, but there aren’t many late ballots remaining. When the final vote is tallied, Prop 1 will have failed by about eight points.
By modern American standards, eight points is almost a landslide.
So the question remains: had the county gone to the ballot with the more progressive Motor Vehicle Excise Tax (MVET) we requested from the legislature (a 1.5 percent tax on the value of your car), would voters have approved that at Tuesday’s election? And I think the answer would likely have been a resounding “No.”
Editorial board opponents had touted the regressive nature of Prop 1’s car tab/sales tax combo, but of course that was disingenuous. All our taxes are regressive, and there’s no support from the Blethenites to fix that. The truth is, any Metro funding solution that didn’t involve busting the bus drivers union would have earned a “no” endorsement from the Seattle Times.
Not that there wasn’t a sizable contingent of “no” voters on the left who failed to weigh the regressive nature of bus cuts versus the shitty reality of the tax authority we have. But I just don’t believe that’s a large enough swing vote to overcome an eight point margin. The fact is, most voters just aren’t going to distinguish between an MVET and a VLF (Vehicle License Fee)—they are both taxes that you pay when you renew your car tabs.
King County voters voted against raising taxes on their cars. Period. By eight fucking points. So it would be a mistake to read too much nuance into Tuesday’s results in order to presume that an MVET would have fared much better.
That’s why, unless the legislature is prepared to give King County councilmanic authority to levy an MVET without the approval voters—and the legislature most certainly is not—I believe Olympia’s failure to act is probably now moot. We can’t pass an MVET in a special election, and maybe not in an off-year general election either. Perhaps in 2016, during a high-turnout presidential election, but even that wouldn’t be a sure thing. In the meanwhile, systemwide Metro cuts are now unavoidable.
Politically, that means two things. First, Seattle must act on its own to save our in-city bus service from the cutting room floor. We can do that. Prop 1 passed handedly in Seattle precincts. And we have plenty of funding options.
Second, our county’s legislative delegation must wrap its collective mind around the fact that an otherwise crappy state transportation funding package is no longer a price worth paying in return for Metro MVET authority. The hostage has died. So don’t make major concessions elsewhere in return for a non-councilmanic MVET authority we likely can’t use.
Elections have consequences, and most of Tuesday’s consequences are bad. But let’s not compound them by pretending they didn’t happen.
Mayor Ed Murray announces nothing.
Seattle Mayor Ed Murray packed a conference room at city hall this afternoon to announce that he has no minimum wage proposal. At least not yet. Oh well.
Murray did outline several main points. If he had made a proposal it would phase in to $15 (eventually), indexed to inflation (eventually), with a slower phase-in for small businesses, however “small” is ultimately defined. There would be no “exemptions” we’re told, but there would be a phased out deduction for the cost of providing some benefits. And maybe a tip credit. That’s still under discussion.
I don’t mean to come off as snarky here. This isn’t easy. But he’s pretty much talking about all the things we’ve all been talking about, but without providing much specificity.
So, yeah. No news, really.
It’s not like I write in a vacuum. So when I posted this morning that we should pursue Plan C, and buy back Metro bus service cuts within Seattle, it’s not like I didn’t know that transit advocates had been discussing exactly such an option. But I had no idea that they were prepared to move this quickly:
SEATTLE — Friends of Transit today announced it will file an initiative for the November 2014 ballot that would save bus service within Seattle city limits. The measure could raise up to $25 million a year for the next six years, enough to reverse most cuts to King County Metro routes that serve Seattle.
… The proposed initiative would increase the city’s property tax by $0.22 per $1,000 of assessed value between 2015 and 2021. The measure is estimated to generate $25 million a year in revenue, enough to fund as much as 250,000 hours of bus service. This funding would help stave off cuts to routes operating completely within Seattle, and may help reduce cuts to routes operating between Seattle and other cities. The property tax increase requires a simple majority vote for approval.
I suppose a property tax makes as much sense as a car tab, though at $0.22 per $1,000—$88 a year on a $400,000 home—it will personally cost me a tad more than Prop 1. Either way, I’m all for the city pursuing self-sufficiency in the face of inadequate revenue at the county and state level.
Friends of Transit has a content-free website at the moment, but with endlessly energetic transit advocate Ben Schiendelman behind it, I’m sure that will be remedied in a heartbeat.
– Run on the ACA or at least Medicaid expansion, Democrats.
– I didn’t think Veep was as good as The Thick Of It, but I’m still glad it’s being renewed.
– We know the real voters.
– More Bertha not going.
After Rodney Tom dropped out of his reelection race, I quoted some speculation about who might run for what. And I hoped that the party wouldn’t push McBride into taking the House seat if she didn’t want it.
I don’t know the district as well as he does, but I’d be wary of the party trying to push her out for one of the current representatives. She got in the race when it was going to be a tough election. The party recruited her, and she stuck her neck out for them. I’m not saying if one of the House Dems runs, she shouldn’t run for their seat, but I hope the party will stay out of it if there is a primary.
I don’t know how much pressure there was behind the scenes, but Representative Habib is going to run for Senate, and McBride will run for the House seat he’s vacating.
Apart from it being total bullshit, I’m not sure that the “total compensation” crowd has fully thought through their proposal, particularly when it comes to health care benefits.
Because total compensation would allow employers to deduct from their minimum wage obligation the cost of providing health insurance, it effectively shifts the entire cost of health insurance premiums onto the backs of minimum wage workers. Accept your employer provided health insurance and the cost of the employer’s share will be deducted from your paycheck. Cancel your employer provided health insurance (say, because you are covered under your spouse’s insurance), and your take-home pay will rise according.
Whatever your decision, your employer’s cost of labor remains exactly the same. As such, your health insurance benefit ceases to be a “benefit” when your employer’s share of the premium is effectively zero.
And yet under the Affordable Care Act (you know, “ObamaCare”), employers with 50 or more employees will soon be required to offer affordable coverage to all of their full time employees—”affordable” meaning that the worker does not have to spend more than 9.5 percent of income on premiums.
So what constitutes “income” and what constitutes “premiums” under a total compensation system? These are questions that would surely be litigated, but a quick look at the typical American pay stub makes clear that your federal taxable income (the relevant figure for ACA purposes) is your compensation minus the cost of your health insurance premium. So if your entire premium—including the alleged employer share—were deducted from your paycheck, it would lower your income accordingly.
Now presume a total compensation $15 minimum wage in which your only benefit is health insurance at a cost of $2 an hour ($344 in monthly premiums divided by 172 hours of full time work), bringing your federal taxable income to only $13 an hour. But your $2 an hour in premiums would come to more than 15.3 percent of your $13 an hour income, meaning that your premiums would not qualify as “affordable” under the 9.5 percent rule of the ACA.
Business lawyers might argue that the employer portion of the premium should not be counted toward the employee’s insurance premium costs, but that’s not how it would appear on the pay stub. Both portions of the premium would be listed as deductions to be subtracted from gross earnings. Thus any distinction between the two becomes purely fictional.
Throw in additional deductions under total compensation, and the employer’s ability to meet the ACA employer mandate becomes even less mathematically plausible, exposing the employer to up to $3,000 in annual penalties per employee. Like I said, I’m just not sure the total compensation camp has entirely thought this thing through.
But perhaps just as important to the larger discussion is how the ACA employer mandate rules once again expose total compensation for the lie it is: it simply does not pay $15 an hour. Thus any suggestion that total compensation proponents “aren’t arguing with the $15-an-hour goal,” is a lie as well.
A decade ago, in reluctantly rejecting a guest column I had submitted (a modest proposal on how to increase per-student spending in Washington’s public schools), an editor at one of our region’s dailies lamented that, alas, too many newspaper readers lack “the satire gene.” Well, apparently some newspaper reporters lack this gene as well:
Business leaders aren’t arguing with the $15-an-hour goal. In fact, the OneSeattle website calls the current state minimum wage of $9.32 “undeniably less than it costs to support yourself.”
Yeah, that’s right: Seattle Times reporter Lynn Thompson quotes the wonderfully satirical fake OneSeattle website from a page that is so outrageous (it counts time texting on the job toward total compensation) that it’s hard to believe an informed reader wouldn’t get the joke. But she didn’t. Which has the 1Seattle.org folks crowing.
Amazing.
In other questionable reporting news, the Seattle Times taps a Von Trapp’s bartender as the voice of tipped employees opposing a $15 minimum wage, just days after printing an anti-$15 guest column from Von Trapp’s owner. Hmm.
UPDATE: Ha! I’ve once again earned my reputation as the Seattle Times’ volunteer ombudsman:
Information in this article, originally published April 19, 2014, was corrected April 21, 2014. A previous version of this story incorrectly attributed two quotes to business group OneSeattle’s website.
– Get your ballot in the mail by tomorrow, King County.
– Apparently the Bundy Ranch standoff is like Rosa Parks and Gandhi rolled up in one.
– Admitting privileges for doctors who perform abortions is such a problem. Part 2,874,098,236,930,671 in an infinity part series.
I honestly have no idea what this editorial is trying to say:
THE Legislature already faces the difficult job writing a balanced, education-focused budget when it reconvenes in January. That job got harder two weeks ago with an $80 million bill sent, as if in a time machine, from 2003.
According to a state Supreme Court ruling, the bill is owed to about 22,000 contracted in-home care providers for the state Department of Social and Health Services’ clients with disabilities.
[…] In this case, the state Supreme Court adds to an already hefty bill it imposed in the education-funding McCleary decision, which is coming due. While the court’s job is not to budget, it also does not operate in a vacuum.
Feel free to read all the in-between parts, but it’s not going to help. The Seattle Times editorial board is arguing what…? That the Supreme Court shouldn’t enforce an $80 million judgment against the state? That the Supreme Court shouldn’t enforce McCleary? I presume there’s an opinion in here somewhere.
No, it’s not the court’s job to write the budget. But if the state lacks the financial resources necessary to meet its legal obligations—as determined by the highest court in the state—shouldn’t our editorialists be urging the legislature to write a budget that raises the revenue necessary to obey the law, rather than chastising the court for, um, something?
I dunno, just seems to me like the responsible thing to do.
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