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ProSense

(116,464 posts)
Sun Feb 16, 2014, 06:10 PM Feb 2014

Crossing Borders and Changing Lives, Lured by Higher State Minimum Wages

Crossing Borders and Changing Lives, Lured by Higher State Minimum Wages

By KIRK JOHNSON

ONTARIO, Ore. — Carly Lynch dreams of a life one day on the professional rodeo circuit, but for now she commutes 20 miles from Idaho to this small city in eastern Oregon to work as a waitress. There are restaurant jobs closer to home, but she is willing to drive the extra miles for a simple reason: Oregon’s minimum wage is $1.85 higher per hour than Idaho’s.

“It’s a big difference in pay,” said Ms. Lynch, 20, who moved last summer from her parents’ home in Boise, 30 miles farther east, to make her Oregon commute more bearable. “I can actually put some in the bank.”

In the nation’s debate about the minimum wage, which President Obama has proposed increasing at the federal level to $10.10 from $7.25, this rolling borderland of onion farms and strip malls provides a test tube of sorts for observing how the minimum wage works in daily life, and how differences in the rate can affect a local economy...Ms. Lynch is one of the many minimum-wage migrants who travel from homes in Idaho, where the rate is $7.25, to work in Oregon, where it is the second highest in the country, $9.10. Similar migrations unfold every day in other parts of Idaho — at the border with Washington, which has the highest state minimum, $9.32, and into Nevada, where the minimum rate tops out at $8.25.

<...>

And while some business owners along the border said raising the minimum wage could keep them from adding extra employees, they also said larger economic forces were more important. For example, minimum-wage service jobs in stores, restaurants and motels have boomed on the Oregon side, despite its higher rate, mostly because Oregon has no sales tax.

- more -

http://www.nytimes.com/2014/02/16/us/crossing-borders-and-changing-lives-lured-by-higher-state-minimum-wages.html


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ProSense

(116,464 posts)
2. She moved. I guess it depends on how far she traveled before.
Sun Feb 16, 2014, 06:40 PM
Feb 2014

Still, an extra $1.85 per hour likely covers the cost and more.

unblock

(52,285 posts)
4. compare 20mi commute for $1.85/hr more vs. 5mi commute.
Sun Feb 16, 2014, 06:52 PM
Feb 2014

that's an extra 30 miles of driving. the federal government reimburses travel expenses at $0.56/mi., so that's a convenient estimate of typical expenses. that works out to $16.8/day. she needs a bit over 9 hours of work to cover that, and that dosen't take taxes into account.

and that's relative to where she already moved *to*. though, why she didn't move even closer to oregon, or actually *into* oregon, it doesn't say....

all things considered, she'd have been better off moving closer to a restaurant in idaho even at the lower pay; or better still, closer to a restaurant in oregon.

ProSense

(116,464 posts)
6. It depends
Sun Feb 16, 2014, 07:08 PM
Feb 2014

"compare 20mi commute for $1.85/hr more vs. 5mi commute. that's an extra 30 miles of driving. the federal government reimburses travel expenses at $0.56/mi., so that's a convenient estimate of typical expenses. that works out to $16.8/day. she needs a bit over 9 hours of work to cover that, and that dosen't take taxes into account."

...on the mileage (say 20 to 30 miles per gallon) her vehicle gets. The federal reimbursement rate isn't a factor. It wouldn't take $16.8 per day to commute 40 miles.

unblock

(52,285 posts)
8. don't be so sure. yes, there are many factors, but gas isn't the only one.
Sun Feb 16, 2014, 07:24 PM
Feb 2014

extra miles driven also means more frequent oil changes and repairs, extra risk of damage from accidents, possibly higher insurance rates, etc.

the federal government doesn't reimburse $0.56/mi because they're being generous, they base that on actual studies of typical expenses. true, a waitress is probably on the lower cost end, perhaps driving an older sedan rather than a newer suv, but it's still a good ball park.

perhaps she really is saving a bit even after expenses and taxes, but i can't see it as being all that much.

i maintain that moving closer to a restaurant would have made more of a difference.

ProSense

(116,464 posts)
10. Oh,
Sun Feb 16, 2014, 07:35 PM
Feb 2014
don't be so sure. yes, there are many factors, but gas isn't the only one.

extra miles driven also means more frequent oil changes and repairs, extra risk of damage from accidents, possibly higher insurance rates, etc.

the federal government doesn't reimburse $0.56/mi because they're being generous, they base that on actual studies of typical expenses. true, a waitress is probably on the lower cost end, perhaps driving an older sedan rather than a newer suv, but it's still a good ball park.

...I understand that, but for many even coming out a little ahead makes a difference.

 

yeoman6987

(14,449 posts)
11. Federal government
Sun Feb 16, 2014, 08:51 PM
Feb 2014

When I started working in Maryland, I had sign a form stating that I live in Maryland and not Delaware or Pennsylania. If I did I would still pay Maryland taxes for the Job. I hope she consults a lawyer or tax accountant or she could be in a world of hurt.

unblock

(52,285 posts)
12. yes. at least in my experience, the state where you earn money taxes it first,
Mon Feb 17, 2014, 10:45 AM
Feb 2014

then you have to file as well in the state where you live, but they give you a credit for taxes paid to other states.

if that's the case, then it's a lot of paperwork but she probably wouldn't owe taxes in idaho because oregon's tax rates are higher (well, the actual rates are higher, i didn't check all the deductions and exemptions.

it's possible that she would owe idaho taxes on any non-oregon source income, such as interest on savings, but that can't be much at all in her case.

my own experience is from living in new jersey and working in new york. idaho might handle the situation differently.

 

Coyotl

(15,262 posts)
3. Oregon is the number 1 moved to state for good reasons.
Sun Feb 16, 2014, 06:45 PM
Feb 2014

If you can score a job, you suddenly have no sales taxes and get paid much more, quite a reality shift. Plus, best reason of all, you live in Oregon.

pampango

(24,692 posts)
5. Crossing a border for higher pay and a changed life. Sounds like a republican
Sun Feb 16, 2014, 06:56 PM
Feb 2014

should be building a wall somewhere.

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