Quote:Part of the problem with the cost of labor is due to government regulation.  Let's just say for example that the mechanic's wage is $15 per hour.  That's really not the cost for one hour of his time, that's just what he makes "cash wise".  The business owner, in addition to paying his salary has to pay taxes on his salary (SS), pay for workman's compensation insurance, any possible benefits (health care, 401k, vacation time, sick time, etc.).  The real cost for that employee for an hour of work to an employer is north of $50 per hour... just for the employee.

 

Then take into account other expenses that the employer has to pay.  Electric bill, water bill, inspection fees for fire safety, EPA, OSHA, etc.  You also have to figure equipment cost and maintenance.

 

Suddenly, $100 or more for one hour of shop time isn't really unreasonable, and that doesn't include turning a profit.

Like I said, we live in the richest county in the state that is also considered a resort area so the cost of everything here is more, plus NC likes to tax you to death for everything. For us small time folks, it's a burden. It's almost a backward thing where, instead of everyone having their wealth redistributed to pay for the welfare nation, everyone here is having to pay more so the rich folks have nice things. My husband was born and raised here and has 20+ years in local government employment so we aren't going anywhere anytime soon.

 

I don't have a problem with paying a fair price for labor, but it's pretty bad here and the proposed tax would make it even worse.

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