Washington, D.C. — While lawmakers debate an increase in the federal minimum wage, Amazon has poured millions of dollars into pushing the minimum wage up to $15.
Amazon, which already pays its workers $15, has joined the “fight for fifteen,” but economists worry it is not for altruistic reasons.
In fact, many economists feel that a $15 minimum wage will not only drive out small-business competition but punish consumer retail shops all over the country.
While high-end and big-box stores all over the country have the ability to weather this storm, with many already paying near-$15 wages, local businesses cannot afford that kind of hike and keep the number of employees they currently hire.
This is not the first time that Amazon has lobbied on federal policy. In fact, Amazon spent $200,000 in 2010 pushing for an internet sales tax – a move that economists warned would cost small business owners across the country billions to comply with as it would require businesses to file taxes in functionally any state where they make a sale.
While that effort failed in Congress, Republicans in South Dakota filed a federal lawsuit (South Dakota v. Wayfair) that led to nation-wide internet sales tax in 2017.
As a result of that lawsuit, most internet businesses operate in agreement with large national corporations like Amazon and their competitors in eBay and Etsy to have them handle their tax liability in exchange for a fee.
While Joe Biden has pledged to pass a $15 minimum wage, it is yet to be seen what can be accomplished with small Democratic margins in the House and Senate.
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