Congressional Budget Office: Federal $15 Minimum Wage Would Increase Pay for 17 Million Workers
Congressional Budget Office: Federal $15 Minimum Wage Would Increase Pay for 17 Million Workers

The wage hike would cause 1.3 million Americans to lose their jobs while lifting another 1.3 million above the poverty line.

According to CNBC, a new report from the nonpartisan Congressional Budget Office (CBO) estimates that increasing the federal minimum wage to $15 per hour by 2025 would increase pay for 17 million workers. CNBC notes that the federal minimum wage has been $7.25 since 2009. 

The House of Representatives could vote on the Democrat-backed Raise the Wage Act later this month. However, the Republican-held Senate is likely to oppose the legislation, notes CNBC. Opponents claim that a $15 minimum wage would cut positions for low-wage workers due to higher costs for employers. The CBO projects that such job cuts would affect 1.3 million workers and that a wage increase would “reduce business income and raise prices” and “reduce the nation’s output slightly.”

In addition to the 17 million workers currently earning less than $15 per hour, another 10 million people “otherwise earning slightly more” than $15 an hour could also see a wage hike, according to the CBO. Further, 1.3 million Americans would be elevated above the poverty level. 

Read the full article on CNBC here.

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