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Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
“The minimum wage increase will recirculate back into the economy through spending at the main street shops that make up the fabric of our communities,” said one business owner in New York.
With 23 states and the District of Columbia slated to increase their minimum wages by the end of 2025, the national network Business for a Fair Minimum Wage reports that business owners in states around the country are cheering those increases, saying they will boost consumer spending and hiring, increase productivity, help retain employees, and in general strengthen the economy.
According to a statement Business for a Fair Minimum Wage issued on December 12, the following states will have either a planned or indexed minimum wage increase on January 1: Alaska, Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, Virginia, and Washington.
Florida, Oregon, and the District of Columbia will see increases later in the year, and some states like Alaska will experience multiple wage floor increases during 2025, per the statement.
Voters in Alaska and Missouri approved ballot measures in November that greenlit increases to the minimum wage. Hundreds of business owners in those two states worked with Business for a Fair Minimum Wage to support the ballot initiatives, according to the statement.
"Workers are also customers and minimum wage increases boost consumer buying power. They go right back into the economy as increased spending at local businesses," said Holly Sklar, the CEO of Business for a Fair Minimum Wage.
She added: "State raises are vital for workers, businesses, and communities as the federal minimum wage remains stuck at just $7.25, falling further and further behind the cost of living." The federal minimum wage hasn't budged since 2009, when it was raised to $7.25.
One business owner, Erik Milan, whose music store Stick It In Your Ear is based in Springfield, Missouri, praised the state's increase. "Raising Missouri's minimum wage will be good for workers and businesses. When workers in our community are paid more, they can spend more at local businesses ... Thanks to better wages and paid sick time because of Proposition A, businesses will also benefit from lower employee turnover, increased productivity, better health and morale, and better customer service," he said, per the statement.
Because of Proposition A, Missouri will increase the state minimum wage to $13.75 an hour on January 1 for private and non-exempt employees, and then increase it again to $15 in 2026. Beginning in May of this coming year, employers are required to give employees one hour of paid sick time per 30 hours worked.
Over in Alaska, the owner of Waffles and Whatnot in Anchorage, Derrick Green, said that "Alaska's minimum wage increases will help Alaskans thrive ... The more that people can make a living in Alaska, the stronger our businesses and communities will be."
Same as Proposition A, Alaska's Ballot Measure One mandates that workers will be able to earn one hour of paid sick time for every 30 hours worked. Alaska's minimum wage was already set to increase on January 1, and then thanks to Ballot Measure One it will increase again on July 1 to $13 and then again to $14 in July 2026.
The statement from Business for a Fair Minimum Wage in total quotes 11 business owners touting the wage floor increases, including Jessica Galen, owner of Bloomy Cheese & Provisions in Dobbs Ferry, New York.
"The minimum wage increase will recirculate back into the economy through spending at the main street shops that make up the fabric of our communities. It's a virtuous cycle. When we take care of our employees, they take care of us," she said.
Any near-term policy progress will have to start at the city and state levels and work its way up to the federal level. Three progressive tax victories from last night are an encouraging sign.
If you’ve ever questioned whether our country has an inequality problem, this election should provide all the evidence you need. As billionaires used their financial firepower to throw support their preferred candidates’ way, Americans who’ve been left behind took out their frustrations at the ballot box.
How do we get started on this next chapter in the fight to reverse extreme inequality? With Senate Republicans still short of a filibuster-proof supermajority, next year’s debate over the expiration of the Trump tax cuts could still present one opportunity.
But it’s also likely that any near-term policy progress will have to start at the city and state levels and work its way up to the federal level. Three progressive tax victories from last night are an encouraging sign.
In addition to these fair tax victories, I’m heartened by the passage of pro-worker reforms in several “red” states last night—in sharp contrast to the positions of their Republican representatives in the U.S. Congress.
Washington state’s Initiative 2109 was the most important tax-related ballot measure of the year. Hedge fund executive Brian Heywood bankrolled this campaign, hoping to repeal the state’s innovative capital gains tax on high earners.
With 62% of votes counted, the rollback proposal went down in a 63-37% landslide.
“This victory shows that advocacy in support of creating a more equitable tax code works,” Melinda Young-Flynn, communications director at the Washington State Budget and Policy Center, told Inequality.org.
“So many groups and individuals—including business owners, labor unions, teachers, racial justice advocates, parents, lawmakers, and many more—have worked together for more than a decade to help the public at large in our state make the connection between commonsense progressive taxes and the very real needs of our communities.”
Introduced in 2022, Washington state’s path-breaking policy imposes a 7% excise tax on capital gains from the sale of stocks, bonds, and other assets that exceed $250,000 per year (excluding real estate sales). Who makes that much from their financial investments? Fewer than 1% of the state’s richest resident.
Prior to the introduction of this tax in 2022, Washington’s wealthy had flourished under a state constitution that prohibits income tax. The capital gains tax does an end-run around that ban and the state supreme court has ruled it constitutional.
In its first two years, the capital gains levy has raised $1.3 billion for investments in childcare and early learning, public schools, and school construction.
“The people of Washington have sent a clear message,” says Young-Flynn. “The well-being of kids takes precedence over tax breaks for the ultra-wealthy. All those of us who care about economic justice know it’s well past time to stop giving the ultra-wealthy a special deal in the tax code at the expense of everyone else.”
Washington state voters also beat back an effort to allow employees to opt out of a new payroll tax for long-term care insurance if they waive the benefit of that state-operated program. If this measure had passed, it likely would’ve rendered the insurance program financially unviable. Fortunately, voters rejected the proposal by a 55-45% margin.
In Illinois, voters expressed support for an extra 3% tax on income of over $1 million, with revenue going to property tax relief. With 89% of votes counted, Illinois voters approved the ballot measure by an 89-11% margin. While this measure is nonbinding, organizers hope this victory will stoke efforts to put a constitutional amendment on the ballot in 2026 to authorize the new tax on the rich.
In addition to these fair tax victories, I’m heartened by the passage of pro-worker reforms in several “red” states last night—in sharp contrast to the positions of their Republican representatives in the U.S. Congress. Voters in Nebraska, Missouri, and Alaska approved guaranteed paid leave and Missouri and Alaska also passed state minimum wage hikes.
A friend just wrote to me with this message: “A tree outside my window is nearly bare. Perhaps it is an image of our national life this morning. We have a choice: to focus on the bare branches or to appreciate the colorful leaves.”
These state victories against the scourge of inequality are some of the colorful leaves I’m appreciating today.
"This is what potentially winning right-wing legal cases read like these days," said one progressive activist. "Dark stuff."
Opinion polls have repeatedly made clear that U.S. voters are turned off by the Republican Party's fixation on banning abortion care and controlling Americans' reproductive choices—but that didn't stop three GOP officials from writing in a court filing this month that they want to restrict abortion pill access because it would reduce teen pregnancy rates in their state.
"In my expert legal opinion, this is deeply gross and weird," wrote attorney and writer Madiba K. Dennie on Monday at Balls & Strikes, a news outlet focused on the judiciary.
Dennie was referring to a legal filing by Republican Attorneys General Andrew Bailey of Missouri, Kris Kobach of Kansas, and Raúl Labrador of Idaho in a case regarding mifepristone, one of two pills commonly used in medication abortions—which account for more than half of abortions in the United States.
As S.P. Rogers wrote at the newsletter Repro-Truth, attorneys general filed an amended complaint earlier this month in an effort to revive Alliance for Hippocratic Medicine v. Food and Drug Administration (FDA), a case in which the plaintiffs argued in favor of severely restricting mifepristone access nationwide.
The three states had joined the case earlier this year, before the U.S. Supreme Court rejected the case based on the plaintiffs' lack of standing.
Because the high court didn't outright dismiss the case, the three attorneys general were able to file a complaint on October 11 seeking to prohibit mifepristone use for anyone under the age of 18 and overturn eased restrictions for the drug.
Bailey, Kobach, and Labrador argued that mifepristone access would could cause "injuries" to their states because it is "depressing expected birth rates for teenaged mothers."
"A loss of potential population causes further injuries as well: The [states'] subsequent 'diminishment of political representation' and 'loss of federal funds,' such as potentially 'losing a seat in Congress or qualifying for less federal funding if their populations are' reduced or their increase diminished," reads the court filing.
In other words, wrote Rogers, in the view of the Republican state officials, "teenage girls, which the states refer to as 'teenaged mothers,' exist for the purposes of churning out new citizens for the states."
"Idaho, Kansas, and Missouri are claiming to have a legitimate, sovereign state interest in forced birth—in teenage girls and women as breeders. It's an argument that positions everyone capable of birthing as brood mares—a scenario in which the state does not exist for the people, but the people for the state—and augurs a future claim for the prohibition of contraception," added Rogers.
Republicans including GOP presidential nominee Donald Trump have signaled their desire to roll back the right to contraception.
At Balls & Strikes, Dennie wrote that the GOP officials made clear that they believe "uteri are state slush funds, and girls owe the state reproduction once they are capable of it."
"A personal dislike of somebody else taking medicine is not a legitimate grievance," wrote Dennie. "So the states are trying to show that they are entitled to the population growth and accompanying funds that pregnant minors would produce, and the FDA is getting in the way of that."
While the argument is "shocking in its brazenness," added Dennie, it shouldn't come as a surprise in a country where the Republican Party has shown no sign of backing down from its goal of banning abortion, even as news reports mount about children who have been forced to give birth and pregnant patients who have died or become gravely ill because healthcare providers have refused to treat them for fear of prosecution.
The legal complaint, said Dennie, "is a natural outgrowth of the conservative legal movement's efforts to subordinate women."