GAINESVILLE - As we ring in the new year, some people are celebrating as the state of Florida raises its minimum wage by 12 cents, to $7.79 an hour. 

 

The increase is part of Florida's annual adjustment for the cost of living, and is estimated to affect a little more than 200,000 workers throughout the state. The increase of 12 cents an hour will translate to an additional $5 per week for those earning minimum wage. But some economists warn that any income gained from the wage hike will only be taxed away by the expected increase in the payroll tax rate.

 

"What you've got is a 12 cent increase in the minimum wage per hour, and then that's going to be offset by a 16 cent increase in the payroll tax deduction," said Dave Denslow, a University of Florida economist. "So you're left with 4 cents an hour less to take home," said Denslow.

 

This year's minimum wage increase of 12 cents an hour is just a third of last year's statewide increase of 36 cents an hour.