Starting today (August 1st, 2016), minimum wage for large employers goes up to $9.50 per hour. Here's exactly why this is still too low to live in this state.

I know this debate has multiple sides. As a former business owner, I know minimum wage increases can really hurt a company's bottom line, so not many business owners are too excited about minimum wage increases. Those who aren't worried about it are generally already paying their employees more than minimum wage.

On the other side of it, the people who work hard are OK with seeing a wage increase, but the bottom line is it's still difficult to live on $9.50 per hour. Keep in mind that before taxes and social security, this is what $9.50 per hour is for a full time 40-hour per week worker...

Per day - $76
Per week - $380
Per month - $1520
Per year - $19,760

Minnesota has high taxes, so after taxes (upwards of 30% or more) take home is around $14,000 per year. Sure, you can live on that, but it's the bare minimum and leaves no room for savings and emergencies. On top of that, health insurance is required, and depending on how many other people you need to support...there's not a whole lot left for much else.

Also, this $9.50 per hour minimum wage only applies to large business owners, with annual gross revenues of $500,000 or more. Small businesses with annual gross revenues less than that are only required to pay a minimum wage of $7.75 per hour.

In January of 2018 there will be another increase to scale with inflation.

Source: Fox 9