Three Ways to Support Maryland Workers this Labor Day

September 5, 2016 by Kali Schumitz in Blog, Economic Opportunity

Today is a day set aside for honoring the contributions that working men and women have made to the strength, prosperity, and well-being of our country. As we celebrate the achievements of the past, there is still more we can do to make Maryland a better place for workers and businesses and strengthen the state’s economy.

Here’s a three-pronged strategy to help workers and support broad prosperity in Maryland:

Tax refund1. Expand the state Earned Income Tax Credit. The Earned Income Tax Credit is a common-sense tax break that helps working people who struggle to get by on low wages and also boosts the economy. Maryland’s EITC allows thousands of families that work hard for low pay to keep more of that they earn, but it leaves out thousands of other low-wage workers. Young people just getting started in the workforce, workers without children and those who don’t claim their child as a dependent get little or no benefit from the current credit, even if they have very low incomes. In fact, many people who work for very low wages go deeper into poverty because they don’t qualify for a meaningful tax break.

Maryland could do more to help these men and women make ends meet by expanding the state EITC to include low-wage workers not raising children.

2. Pass more effective minimum wage laws. When Maryland increased its statewide minimum wage in 2014, it was a great starting point. By July 2018, most workers throughout Maryland will earn at least $10.10 per hour. However, tipped workers will still be earning just $3.63 per hour and hoping customers’ generosity makes up the difference. It often doesn’t. Tipped workers are among the lowest-income Americans and are twice as likely to be poor than other workers. It’s not too late for lawmakers to correct this issue and eliminate the outdated sub-minimum wage.

In many parts of the state, the $10.10 minimum wage isn’t enough for people to make ends meet. It’s less than what it actually takes to afford housing, food, transportation, and other basics. With proposals to increase the local minimum wage in Montgomery County and Baltimore City, these jurisdictions can lead the way for the rest of the state in showing the economic benefits of paying people to build a future.

thermometer-temperature-fever-flu3. Require earned sick days. More than 700,000 Marylanders still lack paid sick days. When they need time off to recover from an illness, see a doctor, or care for a sick child, they have to choose between their health and their income – or even their job. Requiring businesses to allow all employees to earn paid sick days would be good for Maryland families, businesses, and public health.