Oregon gas tax and minimum wage going up?

It's just proposed talk in OR right now; similar tax and wage ideas have been floating around here in WA the past few months. However, the minimum wage in the Seattle area has been raised already, but still being protested.

Initial results in Seattle it appears that the $15 wage hasn't impacted anything.

Washington is also looking at a gas tax increase, it got the support of the GOP in the State Senate, so it's probably going to happen. While a gas tax hike is no fun, voters (and businesses) are tired of no state transport plan or funding (it's been several years). A couple years ago Oregon passed a plan to improve the I-5 bridge between OR and WA, if the Washington legislature would fund half. Instead they couldn't pass any transport plan.

Nope - if either of those were true then it would be front page news - it's not. When gas prices dropped someone mentioned that they could raise the gas tax to fix the roads but that idea lasted about 15 seconds.

Sad that people don't realize that you cannot raise the minimum wage in a vacuum. If minimum wage rate is increased to $15.00 an hour, all those people making more than minimum wage now are going to want comparable increases. Someone currently making $15.00 (approx. double the current minimum) they are going to want raises to $30.00 which would be double the new rate. I mean, why have a skill or education if it doesn't make you more money than a burger flipper. Everything will rise in price. Not just your Big Mac. In the end, the buying power of the minimum wage worker will remain about the same. They can buy two $3.75 Happy meals an hour today, they will be able to buy two $7.50 happy meals 6 months after their wages go up. The cities that have drastically raised minimum wage today can do it with little bad effects because it hasn't had the ripple effects out to their suppliers who operate outside the high wage zone since the farmer, truckers, bun makers, pickle picklers and the like are still paying $7.50 to their employees in the suburbs. Make it statewide or nationwide and prices and wages will rise until they reach an equilibrium which will leave everyone with basically the same buying power as today. $15.00 an hour wages will be offset by $15.00 burgers.

Higher wages, healthcare, taxes, all get passed down to the consumer in the form of higher prices on goods and services. Anytime you increase the cost of doing business the rich or business owners pass those cost on to the consumer. Business 101.

I would vote for an increase in the gas tax IF I thought it would actually go to fix the roads here in SC. However, the DOT as such a bad reputation for mismanagement of the funds they already get no one believes it will be monies well spent.

I tend to agree with westernrvparkowner. Two other downstream impacts will be less entry level jobs as more of them are automated or simply eliminated, and continue the US direction of being the high cost producer of goods and services which has it's own repercussions.

CWSWine wrote:
Higher wages, healthcare, taxes, all get passed down to the consumer in the form of higher prices on goods and services. Anytime you increase the cost of doing business the rich or business owners pass those cost on to the consumer. Business 101.

What? You mean they don't just suck it up and pay for the increases out of their profits? Betcha the politicians don't know this or don't believe it for a minute!

wildtoad wrote:
I would vote for an increase in the gas tax IF I thought it would actually go to fix the roads here in SC. However, the DOT as such a bad reputation for mismanagement of the funds they already get no one believes it will be monies well spent.

I tend to agree with westernrvparkowner. Two other downstream impacts will be less entry level jobs as more of them are automated or simply eliminated, and continue the US direction of being the high cost producer of goods and services which has it's own repercussions.

If it happens like the OP said, that extra dollar per gallon of gas would go to the highway department and they would use that money to pay the 5 guys leaning on their shovels twice what they are making now. And don't forget the 50 layers of bureaucrats that oversee those workers will need raises too. After all, they are now supervising $15.00 an hour workers, not $7.50 workers. More responsibility, more pay, the American Way.

westernrvparkowner wrote:

wildtoad wrote:
I would vote for an increase in the gas tax IF I thought it would actually go to fix the roads here in SC. However, the DOT as such a bad reputation for mismanagement of the funds they already get no one believes it will be monies well spent.

I tend to agree with westernrvparkowner. Two other downstream impacts will be less entry level jobs as more of them are automated or simply eliminated, and continue the US direction of being the high cost producer of goods and services which has it's own repercussions.

If it happens like the OP said, that extra dollar per gallon of gas would go to the highway department and they would use that money to pay the 5 guys leaning on their shovels twice what they are making now. And don't forget the 50 layers of bureaucrats that oversee those workers will need raises too. After all, they are now supervising $15.00 an hour workers, not $7.50 workers. More responsibility, more pay, the American Way.

....REALLY.... as a retired road worker I don't think you really know much about road maintenance wages or the material costs involved. In the 90's hot mix was $16.00 a ton, same supplier now charges $60.00 a ton. Equipment costs, fuel costs both up and labor costs are a union and management negotiated item in most government operations, not minimum wage jobs for sure.

If they raise the minimum wage that much there won't be many people getting it the rest will be out of a job. When labor costs reach a certain level hamburgers will be made by machines. They already have these machines, they are just too expensive at current wage levels. I have heard Wal Mart is raising wages, don't know for sure if true or not. However at my local Wal Mart they just took out a bunch of check out lanes. Now one cashier is stationed at ten "self checkouts" so one person is doing what eight or ten used to do. Jim.