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Workers at Rocket Auto Wash in Sioux City say an extra $1.75 an hour would be great. But the owner says, the President's proposal to raise minimum wage to $9 could actually be bad for business.
"If they raise it a $1.75, we're all in trouble," said Mark Hanson, owner of Rocket Auto Wash.
Hanson says the last time there was an increase in minimum wage, it hurt his business.
"It cost me $50,000 a year."
Hanson says when that happens he has to look at raising prices and cutting back on employees. Two things that aren't good for business.
Right now, minimum wage is $7.25 an hour. President Barack Obama is proposing to raise the hourly rate to $9. That extra $1.75 an hour, works out to be roughly an extra $280 a month. Which is hard not to smile about for some people.
"It's more gifts for my daughter. More stuff to buy, more stuff to spend money on," said Ryan Glover, a Rocket Auto Wash employee.
The wage increase would be tied to inflation. So pay check goes up, so does the price of everything else. Which is exactly why Hanson says the President's proposal is no good for small businesses or employees.
"People think it helps, but in the long run it just hurts, because all the other businesses have to increase their prices too," said Hanson.
The proposal to raise minimum wage to $9 won't reach the federal level until the end of 2015. If it were to be enacted, nearly 15 million low income workers would see a boost in their paychecks.