As a result of the Los Angeles ordinance, government subsidies to L.A. workers now receiving a living wage have dropped by 40 percent. Increase local tax revenue and strengthen local businesses By providing workers with more purchasing power, more money is fed into the local economy. This creates higher sales for businesses and, thereby generates greater sales tax receipts. In addition to higher state sales tax revenue, incomes would be higher and more likely to be subject to income taxation. Many businesses have reacted positively to living wage laws.
Higher wages mean lower turnover for businesses because workers can better support their families.
Tax dollars should not be used to create low-wage jobs which force workers to seek public assistance to make ends meet. A state Living Wage law a solid first step toward ending that cycle. A Living wage workers pay more taxes than minimum wage workers. Living Wage workers spend more in their communities. A designed for temporary or emergency use when funds are low.