How a wage increase would impact your income tax

SPRINGFIELD, Mass. (WWLP)– Right now the minimum wage for all workers in Massachusetts is nine dollars an hour.

It’s scheduled to go up one dollar each year for the next two years, putting it at 11 dollars an hour by 2017.  In recent years, a nationwide fight to up wages for fast food workers specifically to 15 dollars an hour has been ongoing..

Some argue that kind of a jump in wages would be a problem for businesses.

“If you raise the wages you have to raise the price of the goods you sell if you raise the price of the goods you sell you may sell less,” Andy Skvoback, from East Longmeadow, said.

On the other side, workers that have been fighting for that higher pay say they need it to earn a livable wage. But that amount of a wage increase would mean those workers will pay more in taxes, according to a tax professional in Springfield

“The more you make the more you pay. So if somebody was making 10 dollars an hour working 40 hours a week that’s 400, at 15 dollars and hour that’s 600, 200 more a week that’s 10,000 a year, that gets taxed at a higher rate,” Tax Attorney Paul Mancinone told 22News

He also said an upped wage in any line of work would also mean a lower earned income tax credit. He explained, that’s because the higher the wage, the less the federal government pays you for that particular tax credit.

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