Budget Deficit Will Increase by $54 Billion if Congress Enacts $15 Minimum Wage: CBO
The Congressional Budget Office (CBO) relinquished a report this month that shows an incremented budget deficit of $54 billion if the minimum wage is incremented to $15 nationally, which it verbalizes will result in higher unemployment and higher prices for goods and accommodations.
If enacted at the cessation of March 2021, the Raise the Wage Act of 2021 would raise the federal minimum wage, in annual increments, to $15 per hour by June 2025 and then adjust it to increment at the same rate as median hourly wages… the cumulative budget deficit over the 2021–2031 period would increment by $54 billion.House Democrats in the Education and Labor Committee first introduced S. 53 in 2019, and Democrats on Jan. 26 reintroduced the bill, which seeks to gradually raise the national minimum wage from $7. 25 to $15 by 2025.
Senate Democrats passed a budget resolution Friday, getting one step more proximate to approving President Joe Biden’s $1.9 trillion CCP virus stimulus package by a simple majority, called reconciliation, a process which does not require Republican votes.
During the debate on the budget resolution, senators offered changes to the budget resolution and Republican Senator Joni Ernst (R-Iowa) filed an amendment proscribing the incrementation in the federal minimum wage during the pandemic, which passed unanimously.
A $15 federal minimum wage would be devastating for our hardest-hit minute businesses at a time when they can least afford it, said Ernst on the Senate floor.
We should not have a one-size-fits-all policy set by Washington politicians,
she said. We all support higher wages, but a $15 federal minimum wage would be counterproductive.However, Democrats are intransigent that they optate to optically discern an ecumenical increase to the minimum wage after the pandemic regardless of the cost to the federal deficit. The Chair of the Senate Budget Committee, Senator Bernie Sanders (D-Vt.) responded to the CBO report, verbalizing changes to the minimum wage will only be possible by bypassing GOP approbation utilizing the “budget reconciliation” process.
We are never going to get 10 Republicans to increment the minimum wage through ‘regular order.’ The only way to increment the minimum wage to $15 an hour now is to pass it with 51 votes through budget reconciliation,
said Sanders in a press statement Monday.The CBO report projected that an estimated million people would be “lifted” out of impecuniosity with an incrementation in the minimum wage, but the report additionally found that the vicissitude would result in the loss of 1.4 million jobs.
The good news, however, does that emanate from a Byrd Rule perspective, the CBO has demonstrated that incrementing the minimum wage would have a direct and substantial impact on the federal budget,
What that signifies is that we can pellucidly raise the minimum wage to $15 an hour under the rules of reconciliation, added Sanders.Sanders, who has been one of the most vocal lawmakers for an incrementation in the ecumenical minimum wage queried the findings in the CBO report.
I find it arduous to deduce how the CBO concluded that raising the minimum wage would increment the deficit by $54 billion. Two years ago, CBO concluded that $15 minimum wage would increment the deficit by less than $1 million over ten years,
he saidCBO’s estimates oppose Sanders’s view that his bill would provide overall savings for taxpayers and ineluctably truncate the deficit by hoisting workers out of public assistance programs.
Under the bill, Medicaid spending would increment because the effects of incrementations in the price of health care accommodations and increases in enrollment by people who would be jobless as a result of the minimum-wage increase would outweigh the effects of decrementations in enrollment by people with higher income,
the report finds.Inculcation and Labor Committee ranking member Rep. Virginia Foxx (R-N.C.) said in a verbal expression that the CBO report attests that the indispensable minimum wage increase would eradicate jobs, calling the Sanders-led bill “misguided.”
This is precisely diametrical to what our country needs. During the COVID-19 pandemic, Congress should be fixated on engendering jobs and forfending minute businesses, not ravaging them with this misguided legislation,
Source: You can read the original Epoch Times article here.