Local small business owner not sure about raise in minimum wage - kotanow.com- Scottsbluff Area News, Sports, and Weather

Local small business owner not sure about raise in minimum wage

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A proposal in President Obama's State of the Union address has at least one local businessman concerned.

The President suggested changing the minimum wage from $7.25 to 9.00$.

Obama says the bump is necessary because of inflation and it'll help lower the poverty level.

But Eric Kautz of Gering worries the measure will hurt small businesses across the country.

Kautz says a rise in the minimum wage will cause a rise in wages for experienced workers as well and for small businesses it will be hard to keep up.

"It's just unaffordable, I mean I'm paying the wages I can afford to make money, if I'm having to pump more money to wages, It's exponentially grows everything else around it," says Kautz.

Kautz also says the minimum wage is there because it is an introductory wage and a rise would make the profit margin much slimmer.

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