Minimum wage and Working Family Credit are complementary, not competitors

State tax credits and the minimum wage have their greatest success when they work together, according to a Minneapolis Star Tribune column by Minnesota Budget Project Director Nan Madden.

Pair Tax Credits with Higher Minimum Wage calls on the Minnesota Legislature to raise the minimum wage and strengthen the Working Family Credit (WFC), in order to boost the economy and build ladders for low-wage workers to climb into the middle class.

Minimum wage and WFC

The column explains how the minimum wage and WFC take different routes to making work pay.

The minimum wage increases workers’ paychecks, providing more income to spend on the basics, like groceries and rent. The WFC offsets a portion of the substantial taxes that lower-income working families pay through an annual refund.

Raising the minimum wage and strengthening the Working Family Credit are key investments in opportunity and shared prosperity for all Minnesotans.

-Barb Brady

About Barb Brady

Barb Brady is the Minnesota Budget Project’s communications manager. She came to us from the Pennsylvania State Education Association, where she was communications manager and a Communications/Organizing Specialist. Barb served as the Wisconsin Education Association Council’s press secretary for nine years before that. Barb started her career as a news reporter in Wisconsin before moving into public relations.
This entry was posted in Economy, Taxes and tagged , , . Bookmark the permalink.

One Response to Minimum wage and Working Family Credit are complementary, not competitors

  1. Pingback: Minnesota takes steps to make work pay | Minnesota Budget Bites

Leave a Reply