Both Parties Look to Spin Report to their Advantage
A new report released on Tuesday by the
non-partisan Congressional Budget Office found that increasing the minimum wage
to $10.10 an hour, as proposed by President Obama would cost about
500,000 jobs. The report sparked a debate in Washington. Republicans argued
that the report showed that increasing the minimum wage would have a
significant negative impact on those that it is designed to aide. On the
Democratic side, the response was more mixed. They focused on the
projection that a number of Americans would be lifted out of poverty.
What It Means:
The new data are bound to complicate the President’s push to increase the minimum wage nationwide via federal legislation.
The Senate will consider legislation from Iowa Sen. Tom Harkin (D) next month that would raise the minimum wage to $10.10 by 2016 in three steps. It is not clear if the House will take up such legislation, but it seems unlikely as the GOP leadership in that chamber opposes it.
NFIB opposes the minimum wage increase. Read CEO Dan Danner's blog to see why. The NFIB Research Foundation published several studies on the minimum wage increase. Like most government mandates on business, raising the minimum wage will have a deep and disproportionate impact on the small-business sector.
This news article is intended to keep small business owners apprised of current events that may affect them. It does not necessarily reflect NFIB’s policy position on such issues.