NFIB Says Doubling the State Minimum Wage Would Lead to Job Cuts

Date: February 25, 2019

NFIB’s state director for Texas, Annie Spilman, will warn lawmakers today that doubling the state minimum wage to $15 an hour would end up hurting the employees they say they’re trying to help.

“There’s only so much money in every employer’s budget,” Spilman said, who will testify before the House International Relations and Economic Development Committee in opposition to House Bill 194. “If you pass legislation increasing the cost of labor, they’re going to have to cut spending someplace else, and that means cutting jobs,” she said.

Spilman cited a recent economic forecast by the NFIB Research Center that warned that raising the federal minimum wage would lead to massive job losses, lost production and lower incomes. State-specific estimates are unavailable, but the forecast said if the federal Raise the Wage Act becomes law, there will be about 1.6 million fewer jobs nationwide by 2029. 

“While low-wage workers able to find or retain a job would benefit from the proposed legislation, such gains come at the expense of a very large number of low-wage workers who would lose their jobs due to businesses unable to absorb the costs of a higher minimum wage, resulting in net negative employment and output effects,” the study notes. Click here to read the study.

“Our small business members believe that raising the minimum wage is about politics, not creating sound policy,” Spilman said. “If the Legislature wants to make things better for working families, it will focus on creating an environment where businesses can grow and create jobs instead of dictating wages.”

Related Content: Small Business News | Minimum Wage | Texas

Subscribe For Free News And Tips

Enter your email to get FREE small business insights. Learn more

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More

Or call us today
1-800-634-2669

© 2001 - 2024 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy