Proposed minimum wage increase sparks debate - 12 News KBMT and K-JAC. News, Weather and Sports for SE Texas

Proposed minimum wage increase sparks debate

At Tuesday night's State of the Union address, President Obama proposed a raise in the nation's minimum wage from $7.25 to $9 an hour and there's been quick reaction by employers and workers.

"Let's declare that, in the wealthiest nation on Earth, no one who works full-time should have to live in poverty," President Obama announced in his address. But some people 12News spoke with Wednesday say you need to look at more than the dollar 

Rich Corville, owner of Corville's Catering and Special Events in Beaumont, has been in business for 17 years. He says there are other costs that come with that potential pay increase that employers will be responsible for.

"When payroll increases, yeah that's good for the worker, it's good for the employee, but the employer gets double, sometimes triple. Your payroll goes up so does you payroll taxes, so does your unemployment taxes."

Everyone we talked to says that the costs of employment will be passed on to every consumer. So for instance grocery stores have to pay employees more. That gallon of milk that is $3.78 a gallon will take even more of your money.

Derrick Barber with express employment professionals places employees in temporary positions.

"A lot of businesses are seeing a crunch right now with increased taxes they are afraid to hire, with health care and things like that."

He says because of that, he's seen an increase in those hiring his temporary employees..

"You adjust to it and you move on."