The Congressional Budget Office (CBO) has released a report indicating that the Democrats' Raise the Wage Act of 2023, which seeks to increase the federal minimum wage to $17 an hour, could result in the loss of up to 1.4 million American jobs over the next ten years. The CBO estimates that the bill would also increase the deficit by $46 billion over the same period, with a significant portion of the cost coming from increased expenses to Medicare and Medicaid.
According to the report, the legislation would not only lead to job losses but also result in increased prices for goods and services. This would put additional financial burden on American families, particularly at a time of high inflation under President Biden.
Senator Bill Cassidy, the ranking member of the Senate Health, Education, Labor and Pensions (HELP) Committee, expressed concern about the potential negative impact of the proposed legislation. He stated, "A higher minimum wage does not mean much to a worker who loses their job because of it. We need to have a responsible conversation about the minimum wage, but Democrats’ approach would hurt small businesses and take away opportunities from hardworking Americans."
To address the issue of raising the minimum wage in a more measured manner, Senator Cassidy and his Republican colleagues introduced the Higher Wages for American Workers Act earlier this year. This alternative legislation proposes a gradual increase of the federal minimum wage to $11 and includes provisions for mandating E-Verify to ensure a legal workforce. Additionally, the bill suggests indexing future minimum wage increases to inflation.
The CBO report serves as a reminder of the potential consequences of increasing the minimum wage to such a significant extent. While the goal of providing higher wages for workers is commendable, it is crucial to consider the impact on businesses and job opportunities. Finding a balanced approach that takes into account the needs of both workers and employers is essential.
For more information and updates from the HELP Republicans, please visit their website or follow them on Twitter at @GOPHELP.
Click this link to access more information: https://www.help.senate.gov/ranking/newsroom/press/cbo-democrats-17-minimum-wage-bill-to-cost-14-million-american-jobs
