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.
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.