Massachusetts Blows the Trump Boom Windfall

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Massachusetts Blows the Trump Boom Windfall

You know that boom in hir­ing, invest­ment, man­u­fac­tur­ing tak­ing place all over the nation that has resulted in expan­sion for busi­ness and bonus’ for employ­ees every­where? Well Mass­a­chu­setts has taken deci­sive steps to put an end to all that.

On June 28, 2018, Mass­a­chu­setts Gov­er­nor Char­lie Baker signed a bill titled “An Act Rel­a­tive to Min­i­mum Wage, Paid Fam­ily Med­ical Leave, and the Sales Tax Hol­i­day” (H.4640). The new law, dubbed the “Grand Bar­gain,” imple­ments incre­men­tal increases in Mass­a­chu­setts’ min­i­mum wage over the next five years, and cre­ates a new paid fam­ily and med­ical leave pro­gram in the Com­mon­wealth. A full text of the bill can be found here.

Min­i­mum Wage Increase
The law increases the min­i­mum wage from $11.00 to $15.00 over the course of five years. In 2019, the min­i­mum wage will increase from $11.00 to $12.00. There­after, it will con­tinue to increase each year in $0.75 incre­ments until it reaches $15 in 2023. The Grand Bar­gain also results in a five-​year phase out of the require­ment of pre­mium pay for hours worked on Sunday

Six months ago if you were a Mass­a­chu­setts busi­ness, you were think­ing about how you would use those tax cuts to grow your busi­ness, now you are think­ing if you have 50 employ­ees you are going to have to make sure you can gen­er­ate an extra $100,000 next year and $400,000 by 2023 to cover the wage increases for those fifty folks, not to men­tion the taxes that come along with it.

So while busi­ness in other states take advan­tage of both the Trump boom and the Trump tax cut to expand their pro­duc­tion, mod­ern­ize equip­ment, bring in new work­ers, pay bonuses to reward their best work­ers busi­nesses in Mass­a­chu­setts are going to have to think twice before tak­ing any steps know­ing those low skill work­ers will add $8000 to the debt side of their ledger each.

And it’s worse than it sounds because while in a one party state like Mass­a­chu­setts there is absolutely no prospect of this higher min­i­mum wage being reversed, there is always the chance that the Trump boom might be cur­tailed by a Demo­c­rat vic­tory in Novem­ber of this year or in 2020 and of course as the Trump Tax rates aren’t per­ma­nent it’s very pos­si­ble either a vic­to­ri­ous Demo­c­rat or a feck­less GOP con­gress will choose to let them die.

Mass­a­chu­setts vot­ers may have over­whelm­ingly voted for Hillary Clin­ton but they had bet­ter pay that Don­ald Trump stays where he is with a GOP con­gress because once the Trump boom and the Tax cuts end, so will the jobs that this econ­omy has pro­duced and dis­cover that the true min­i­mum wage remains con­stant at zero.

If you are a young per­son or some­one start­ing a fam­ily the time to get out of this state is now.


if you think this site in gen­eral and this project in par­tic­u­lar is worth sup­port­ing please con­sider kick­ing in here:



Or even bet­ter subscribing.


Choose a Sub­scrip­tion level


Or buy­ing my book Hail Mary the Per­fect Protes­tant (and Catholic) Prayer

Either way it’s most appreciated.

You know that boom in hiring, investment, manufacturing taking place all over the nation that has resulted in expansion for business and bonus’ for employees everywhere? Well Massachusetts has taken decisive steps to put an end to all that.

On June 28, 2018, Massachusetts Governor Charlie Baker signed a bill titled “An Act Relative to Minimum Wage, Paid Family Medical Leave, and the Sales Tax Holiday” (H.4640). The new law, dubbed the “Grand Bargain,” implements incremental increases in Massachusetts’ minimum wage over the next five years, and creates a new paid family and medical leave program in the Commonwealth. A full text of the bill can be found here.

Minimum Wage Increase
The law increases the minimum wage from $11.00 to $15.00 over the course of five years. In 2019, the minimum wage will increase from $11.00 to $12.00. Thereafter, it will continue to increase each year in $0.75 increments until it reaches $15 in 2023. The Grand Bargain also results in a five-year phase out of the requirement of premium pay for hours worked on Sunday

Six months ago if you were a Massachusetts business, you were thinking about how you would use those tax cuts to grow your business, now you are thinking if you have 50 employees you are going to have to make sure you can generate an extra $100,000 next year and $400,000 by 2023 to cover the wage increases for those fifty folks, not to mention the taxes that come along with it.

So while business in other states take advantage of both the Trump boom and the Trump tax cut to expand their production, modernize equipment, bring in new workers, pay bonuses to reward their best workers businesses in Massachusetts are going to have to think twice before taking any steps knowing those low skill workers will add $8000 to the debt side of their ledger each.

And it’s worse than it sounds because while in a one party state like Massachusetts there is absolutely no prospect of this higher minimum wage being reversed, there is always the chance that the Trump boom might be curtailed by a Democrat victory in November of this year or in 2020 and of course as the Trump Tax rates aren’t permanent it’s very possible either a victorious Democrat or a feckless GOP congress will choose to let them die.

Massachusetts voters may have overwhelmingly voted for Hillary Clinton but they had better pay that Donald Trump stays where he is with a GOP congress because once the Trump boom and the Tax cuts end, so will the jobs that this economy has produced and discover that the true minimum wage remains constant at zero.

If you are a young person or someone starting a family the time to get out of this state is now.


if you think this site in general and this project in particular is worth supporting please consider kicking in here:



Or even better subscribing.


Choose a Subscription level


Or buying my book Hail Mary the Perfect Protestant (and Catholic) Prayer

Either way it’s most appreciated.