Maryland is officially the first state to require all their contractors to pay a “living wage” that is a full 5 dollars more than the minimum wage (in the Balt/Wash corridor).
To me, this is simply confusing. In a time when Maryland is facing serious fiscal challenges, it falls upon them as necessary to (out of the goodness of their hearts) to purposefully increase their overall expenses. The bill was passed a few years ago, but was sanely vetoed by then governor Ehrlich.
Two things will happen now that the boy-wonder from Baltimore has signed off on it:
1) Maryland (not presently considered a low-tax haven) will be “forced” to raise taxes substantially, again, to make up for the extra expenses.
2) Businesses who hire employees outside of state contract work will be forced to pay more, because their prospective employees will demand it, “but State jobs pay…”
As a result, tax-payers suffer, and employers will be forced to hire less employees, so some who could be making $6.15 an hour will be out of a job altogether.