CBO projects $15 minimum wage would cost 1.3 million jobs

The report comes as Democrats in Congress are pushing to more than double the federal minimum wage.

The Washington Examiner reports:

The nonpartisan Congressional Budget Office said Monday that raising the federal minimum wage to $15 an hour, up from the current rate of $7.25 a hour, would likely cause 1.3 million people to lose their jobs.

This would erase the overall benefits of the higher wage, with family income falling by $9 billion or about 0.1%, adjusted for inflation.

The report comes as Democrats in Congress are pushing to more than double the federal minimum wage. House Democrats are expected to vote on the Raise the Wage Act, which would raise the rate to $15 by 2024, before the August recess

The agency's analysis found that while the poorest would benefit from the effort, most others would see losses. The increase would raise the pay of about 17 million workers currently below the $15 level and another 10 million workers slightly above it, but this would be offset by the reduction in income for families above the poverty line due to fewer jobs, higher prices, and loss in income for business owners.

"CBO estimates that families whose income would be below the poverty threshold under current law would receive an additional $8 billion in real family income in 2025 under this option. That would amount to a 5.3% increase in income, on average, for such families. That extra income would move, on net, roughly 1.3 million people out of poverty. Real income would fall by about $16 billion for families above the poverty line," the report found.


2 days, 17 hours ago

Virginia Democrats Voted to Allow Schools to Refrain from Reporting Sexual Battery in 2020

Virginia Democrats passed a law allowing schools to refrain from reporting instances of sexual battery, stalking, and other crimes occurring on school property in 2020

3 days, 13 hours ago

Sen. Tim Scott endorses McMaster in South Carolina governor's race

U.S. Sen. Tim Scott didn't endorse a primary candidate in South Carolina's 2018 gubernatorial race, but for 2022, he's offering an early nod to incumbent Republican Gov. Henry McMaster.

4 days, 16 hours ago

Youngkin says education is top issue in Virginia governor race: 'Parents are absolutely angry'

Republican Virginia gubernatorial candidate Glenn Youngkin on Tuesday referred to education as the top issue in the state's election

4 days, 19 hours ago

Abbott Completely Bans Vaccine Mandates By Any Employer In Texas

"The Biden Administration is now bullying many private entities into imposing COVID-19 vaccine mandates."

5 days, 19 hours ago

Gov’s campaign paid $87.5K more to ex-staffer

Gov. Michelle Lujan Grisham’s campaign paid an additional $87,500 over the past six months as part of a settlement with a former staff member who had accused her of sexual mistreatment during a 2018 meeting

1 week, 1 day ago

Arizona border just as ‘out of control’ as Texas, Gov. Doug Ducey warns

Border Patrol agents in western Arizona’s Yuma region have encountered 1,038% more suspected illegal immigrants year-over-year.