The Congressional Budget Office has released a new report on the budgetary and economic impact of President Joe Biden and congressional Democrats’ Raise the Wage Act. Supporters of the Raise the Wage Act have framed it as giving low-income workers a pay raise, but they’re ignoring the actual impact increasing the minimum wage will have on those very same workers.
The goal of the Raise the Wage Act is to gradually increase the federal minimum wage to $15 per hour by 2025 from the current $7.25 per house. After 2026, the minimum wage will be indexed to median wages. Tipped workers would also see an increase in the minimum wage to $14.95 per hour by 2026 from $2.13 and equal to the standard minimum wage.
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