Some ISU students said they think the recent raise in minimum wage is a step in the right direction for young workers.

President Bill Clinton and congressional Republicans came to an agreement Wednesday on a tax legislation that will include a break for low-income people and will carry a $1 increase in minimum wage.

“I think that they should raise minimum wage because I have made it before, and it does not get you anywhere,” said Andrea Glawatz, senior in psychology. “When I did make minimum wage, it was difficult to pay for bills, food, rent and books.”

Dan Hatt, freshman in pre-business, said this wage increase could benefit work-study employees since they do not get taxes taken out of their paychecks.

“I hope that people already making over minimum wage do not get upset because they probably will not make any more money,” he said.

Peter Mattila, professor of economics, said this is the perfect time to raise minimum wage because the labor market is so tight.

This means there are more jobs than there are people wanting to fill them.

“In a less tight market, higher minimum wage makes it harder for youths and low-skill workers to find and retain jobs,” Mattila said.

He said this is because businesses cannot afford to hire new labor since they will end up losing money.

“This is good news for college students who are always short on money; however, it is going to be very hard on small businesses where the tax break will not help,” said Shannon Dudley, freshman in materials engineering.

According to an Oct. 26 Associated Press article, part of the tax break will increase the meal deduction, extend the Work Opportunity Tax Credit to include businesses that hire from certain groups and repeal the tax on distilled spirits and wine. Dudley said she thinks this will only help a few assorted businesses.

The deadline on this legislation is Nov. 1 in order to avoid upsetting the European Union.

“In my opinion, the tax cuts are heavily driven by the politics and the upcoming election,” Mattila said.