State Impact: The bill would have a minimal, although unknown, impact on State revenues. Presumably, absent the bill, affected workers will receive a higher wage, thus increasing revenues from a number of taxes, particularly the income tax and sales tax. Consequently, State revenues would be reduced because of the elimination of any locally set minimum wage requirements, such as local living wage ordinances in Ypsilanti Township and the Cities of Detroit, Ypsilanti, and Warren. However, by the same reasoning, such local minimum wage ordinances may result in higher labor costs for both public and private entities. Higher business costs tend to be associated with reduced private business activity, thus lowering the State's tax revenue, to the extent that such reduced private business activity reflects cessation of activities rather than the relocation of business activity. Under such reasoning, the bill's proposed elimination of local minimum wage ordinances in excess of the State's minimum wage would be associated with increased business activity and higher tax revenues. The net impact on State revenues of these two different effects is unknown, although any effect likely would be small. State expenditures likely would not be affected to any significant degree by the bill.