A new minimum wage hike on Long Island brings workers up to $10 an hour. Will it impact your ability to cover your real estate payments and property taxes?
The New Minimum Wage: Too Much or Too Little?
NewsDay Long Island coverage of the new minimum wage increase paints a fearful picture of local business owners worrying about their costs. The new $1 an hour raise which went into affect at the end of December reportedly has some worried about paying the bills as workers have to be paid more. At the same time most would imagine it almost impossible to live on Long Island if earning just $10 an hour.
An across the board pay raise for employees may be felt by business owners paying the bare legal minimum. It means more outgoing, without any more coming in, unless the new president’s plans to boost the economy really work.
However, just try living in New York on even $70k a year, or $35 an hour. It’s not an easy task. It’s not even easy in places like Florida where housing prices are far lower, property taxes are lower, and there are no state income taxes.
Compounded Expenses
While the world seems bullish on the new White House administration and its potential impact on the economy, one of the side effects of this confidence is rising costs.
We are already facing a string of interest rate hikes. Add to that increasing property prices, higher residential and commercial real estate rents, the impact of inflation on cars, gas and groceries, and higher property taxes, and Long Island business owners and workers could be feeling pinched even tighter in 2017. That’s not even counting if a variety of tax breaks are taken away from New Yorkers in 2017.
What Can I Do?
The dawn of the New Year is a great time to consider moving, looking for a better paying new job or getting new training, relocating a business, and planning new tax saving moves. Of course, not all of these things can have a fast and sure impact. One thing we can all do if we own Long Island real estate is to appeal our annual property tax bills. That can bring rapid and tangible help in lowering our bills, decreasing the pressure to work multiple jobs, or worrying about choosing between laying off workers or closing the doors.