With the minimum wage referendum fully in place and officially law, I was able to speculate what the new minimum wage would look like in 2016 based upon the law’s reflection of the cost of living. According to a study completed by MIT, the new wage would be $11.13 an hour. I believe that I can use this information as data to speculate the median household income of Camden residents in 2016 as well as the median property tax payment.
According to city-data.com, Camden’s median household income in 2011 was $21,191 and the median property tax was $1,971. These numbers came from an economy that just completed it’s first year at a new $7.25 minimum wage. By setting up a proportion, I believe that I can envision Camden’s 2016 median property tax and household income.
Based upon the data collected from 2011 by city-data.com and the prediction by MIT that the cost of living in New Jersey should yield a minimum wage of $11.13/ hour, if such a proportion would stay consistent, then Camden’s median household income would increase by $10,834.82. If the collected median property tax was to be kept consistent with the above proportion of median household income, then Camden could receive $23,417,004 in additional tax revenue based upon a 22,200 person workforce in 2016. By increasing the amount of tax revenue the city can collect, Camden can decrease the amount of State aid it needs.
The only outlying question would be whether or not to keep the median property tax in correlation with median household income immediately after the minimum wage increases. I would argue to allow the citizens to accumulate some savings before taxing all of the new money they’ve just earned in 2016 by lowering the property tax rates. Camden City would still see an increase in tax revenue, just not to the same degree.
*Disclaimer: This concept of study is new to me, so feedback is appreciated.