The Wal-Mart Tax
The Wal-Mart Tax
Figuring out how to deal with the growth of Wal-Mart – and all the negative side-effects of that growth – is a perplexing challenge. But at least one state legislator in America has an innovative idea about how to start.
State Sen. Ken Toole of my new hometown of Helena, Montana has introduced a bill that would impose a gross proceeds tax on “big box stores” like Wal-Mart. The tax, however, would only kick in if these stores did not pay their employees an entry level wage of at least $22,000 a year, counting both pay and benefits.
How does the bill make sure only to hit “big box stores” and not small business? It only applies to a store’s annual gross receipts over $20 million.
It’s an innovative idea, especially when you consider that under the current system, Wal-Mart’s wages are so low its workers often have to collect welfare benefits. In other words, Montana taxpayers are being forced to subsidize Wal-Mart’s mistreatment of its own employees. Under this proposal, if Wal-Mart continued its abusive behavior, the company would be forced to pay for its mess.
Topic Cloud
ArchivesBlog Roll
The problem with this bill is that it discourages businesses to open. Costco, which is one of the best “big box” firms to work for has put on hold its plans to open a new store in Kalispell, MT because of this proposal. While it sounds good, I would much rather that Wal-Mart continue to sponge off the state and get the benefit of several more jobs at Costco. (Costco says the exemption in the bill that is aimed a them actually won’t exempt them).
February 22nd, 2005 at 7:19 pmCostco would be exempt because it meets the minimum standard. In any event, not having all of the details, I think it’s a great idea!!
February 22nd, 2005 at 7:40 pmA very small number of Costco employees fall outside the exemption, so Costco refuses to build another store in the state until this bill dies. It sounds good on paper, and I’m all for sticking it to Wal-Mart, but I want my bigger Costco.
February 22nd, 2005 at 10:05 pmI long ago stopped shopping at Wal-Mart because of their obscene treatment of their serfs, both in pay, benefits and promotions. I encourage everyone to boycott WM, hit them in the pocket-book. There are other cheap stores, Costco, Target, K-Mart to go to.
February 22nd, 2005 at 10:16 pmAs an employee for Costco, I can honestly say that what they pay is very fair not to mention the health benefits. Costco is very progressive in terms of incentives for employees and should be an example for how Big Business can treat its employees. Unfortunately I have seen too many negative portrayals of the company in such papers as the WSJ saying that the expenses (salaries) are too high causing the stock price to be stagnant.
February 23rd, 2005 at 12:12 amI refuse to shop in a WalMart and make it a point to show my disdain to any friends and relatives who do.
As long as we feel we keep having to purchase cheap consumer goods, 93% of which are manufactured overseas by cheap labor, it will not matter whether Costco or Wal-Mart or Target are paying below living wage salaries. Do we really need to get down to whether your cheap junk store is better than my cheap junk store? Isn’t the problem the cheap junk in the first place?
February 23rd, 2005 at 2:35 pmdevil’s advocate here:
“Wal-Mart’s wages are so low its workers often have to collect welfare benefits”
A bold assertion like this really needs some factual statistics/numbers and sources to back up; otherwise, you are feeding your detractors with an easy meal. If your purpose was to evoke feeling:well done; however, if you were attempting to illicit thoughtful response and dialougue, you should at least back up such claims.
February 23rd, 2005 at 6:22 pmPaying a 22,000/year salary to a ‘very small number of Costco employees’ is a deal-breaker for them? This seems inexplicable, with the facts given, the reputation of the company and the pettiness of the apparent expense – (22K – WhateverThePayIsNow)*(VerySmallNumber) is surely vanishingly small compared to a minimum of 20 million…?
Can someone explain, or provide links to the Costco complaint?
February 24th, 2005 at 7:17 am[...] The good folks over at Think Progress highlight an innovative progressive proposal: State Sen. Ken Toole of my new hometown of Helena, Montana has introduced a bill that would impose a gross proceeds tax on “big box stores” like Wal-Mart. The tax, however, would only kick in if these stores did not pay their employees an entry level wage of at least $22,000 a year, counting both pay and benefits… It’s an innovative idea, especially when you consider that under the current system, Wal-Mart�s wages are so low its workers often have to collect welfare benefits. In other words, Montana taxpayers are being forced to subsidize Wal-Mart’s mistreatment of its own employees. [...]
September 6th, 2005 at 5:33 pm